From: Scott Sieck [scottsieck@msn.com]
Sent: Wednesday, March 05, 2003 7:48 AM
To: rule-comments@sec.gov
Subject: SR-DTC-2003-2


Gentleman,
 
The requested rule change proposed by DTC demands careful consideration. The 
consequences may be less obvious if not fully reviewed. The underlying complaint 
by small issuers is the failure of the DTC to properly settle trades. This has 
resulted in the recent request by many issuers to exit the DTC system. 
 
The improper settlement of sells versus buys has created an environment of 
unregistered securities offerings. Sellers including retail, hedge funds  and 
market makers have been permitted to sell stock that either is not available 
to be borrowed, is restricted, or has not under gone affirmative determination 
rules. This results in an unlimited supply of "tradable shares". The lack of 
settlement enforcement inflates and distorts normal supply and demand factors 
in an orderly market. 
 
I can't profit from my purchase without first paying for it at settlement, why 
should a seller profit from his sell without first delivering the stock at 
settlement.?
 
The DTC is requesting a rule change in their favor that they in fact have 
already dictated to numerous issuers. As a litmus test, I would strongly 
encourage the Commission review the settlement records of those issuers 
denied exit as a premise for reform.
 
 
Respectfully
Scott S.
 
 
 


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