From: Jonathan Hodges [jwh185@yahoo.com] Sent: Friday, January 02, 2004 10:25 AM To: Rule-comments@sec.gov Subject: RE File No S7-23-03 417 5th Avenue New York, New York 10016 Mr. Jonathan G. Katz Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549-0609 RE: File No. S7-23-03 Dear Mr. Katz: I am writing this letter to express my concerns with the proposals under Regulation SHO and the possible effects it will have upon short sales in the NASDAQ and NYSE markets. The proposal of putting in a uniform bid test rule is of particular concern to me. I believe it totally and completely contradicts the SEC guidelines of a fair and orderly marketplace. I would consider it to be a huge step backward for the smaller proprietary traders and individual investors. The times of the huge brokerage houses ruling The Street and crushing the smaller man should be over and these new initiatives clearly show that they may not be. As a graduate of Brown University with I a degree in Finance I was always taught that markets should be fair and orderly. The markets should be as free flowing and liquid as they want. A rule like this flies in the face of all that free markets should be. This rule puts a distinct advantage to those who engage in market making activities over the smaller investor and proprietary traders. I am a a Registered OTC Trader at Trillium Trading and I see every day how the markets are manipulated market makers. This rule where prohibiting short sales except for those that are one cent above the current bid will hurt liquidity and transparency. I am shocked that the SEC would even consider the bid test rule as it is just another tool for the major brokerages to put down the little man. The SEC must block this bid test rule. The proposed short sale rules under Regulation SHO should be blocked by the SEC. Major brokerages are always looking for ways to keep the smaller man down and this is just another example of that. Thank you for your time. Sincerely, Jonathan W. Hodges -------------------------------------------------------------------------------- Do you Yahoo!? Find out what made the Top Yahoo! Searches of 2003