From: Emilia Alexsandru []
Sent: December 22, 2003
Subject: File No. S7-23-03

Dear Sirs,

Re: Regulation SHO - Naked short selling.

Naked short selling used to be rampant on the old V.S.E. many years ago, and Fail To Deliver Slips were normally accepted.

All of this has since been cleaned up and we probably have a far superior system in Canada at this time .. WITHOUT MARKET MAKERS. Each company is responsible to maintain an orderly market in its own stock.

As a deterrent to pump and dumps the exchanges monitor the promoters and the quality of professional work done in the field .. referring specifically to our penny mineral exploration stocks. Our new rules require the hiring of mandatory independent qualified professionals to supervise the work and this gives the public speculator ample protection. It has become a very good system now. The markets are much freer and less manipulated than ever before. And in my opinion naked short selling is illegal in Canada. The onus is on our brokers to police this. The ' know your client rule ' is well adhered to.

In contrast your Market Maker System allows unscrupulous brokers to short sell for themselves or indirectly for favored clients without limitation in the name of ' market making '. This not only keeps a lid on fast rising prices that may be warranted but serves to drive them down disasterously as well ( because bids can be hit on a falling market ) -- thereby hurting the public speculator and helping to destroy the company itself. If I was a Market Maker I could sell unlimited shares that I did not own, nor have to deliver, I would become very wealthy. In this business buyers are much harder to find than sellers. The selling part into a good demand is always easy. When the demand stops .. down go prices ( especially if I can help them go down ). When my victims go to 2 cents, I can then go on the buy side if I wish. Pretty good game I would say .. for the brokers !!!!

Respectfully submitted,
Emilia Alexsandru