July 10, 2008
July 10, 2008
Ms. Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F. Street, NE
Washington, DC 20549-1090
Re: Comments on Proposed Amendments to Regulation SHO
File No S7-19-07
Dear Secretary Morris:
I am pleased to see that you are still considering completely eliminating the close out exemption for option market makers that has been apparently allowing hedge funds and others to influence the price of stocks to their advantage. The collapse of Bear Sterns stock price is a good example of what seems to have been going on in small companies for years.
There seems to be many ways for those who desire to bend the law to their advantage to create shares that are never delivered or intended to be delivered. When this happens the price is reduced. The more you can reduce the creation of these types of shares, the more the investing public like me is protected.
I therefore request that you as soon as possible completely eliminate the close out exemption for option market makers.
I also request that you require any one, including hedge funds, that are interested in shorting stocks that before they do so they be required to have a firm locate for those shares..
I also support accurately marking the sales of securities as proposed in the amendment to Rule 200(g)(1).
Sincerely,
Robert W. Raybould
1555 Millcreek Way
Salt Lake City, Utah 84106