January 6, 2004

Security and Exchange Commission
Washington, D.C.

SUBJECT: Comment to File No. S7-23-03

I am one of the hundreds of thousands of people who have been defrauded by naked short selling. I am still waiting for shares purchased in 2001 from my Olde/H&R Block Roth IRA account of Amazon Natural Treasures. If you need details of this problem, consult your records of complaints from 2001.

As far as the new Regulation SHO -

• There should there be no short selling of low market capital company shares? What value does this process bring to an equity market? The only value I can identify is to allow market makers and other market players to manipulate the market to their own reward and attempt to drive these businesses out of existence.

• The proposed rules do not address transactions that have already done their damage. If short sales are allowed they (past, current and future) must be covered within the three day period that covers sales of all securities. The new regulations do not deal with the almost $100 Billion of past naked short selling activity that were clearly illegal. Even after instructions from Ms. Dorothy Kennedy, Director of NASD on April 10, 2001 called for all brokerages to identify all internal positions and existing fails to deliver and take immediate steps to ensure proper deliveries. None of this has been done. It is clear that the NASD cannot regulate itself. Issuing instructions to return payments for undelivered shares could be evidence of a wider conspiracy then was first considered.

• The DTC should be prohibited from lending more shares of a security than it actually holds.

• These new regulations must apply to foreign traders as well as domestic traders.

Sincerely,

David Waldron
1130 Brookhollow Lane
Reno, Nv 89509
Phone: 775 747 5926
E-mail: dewaldo37@charter.net