Subject: File No. S7-02-09
From: share holder

March 9, 2009

Failed to deliver you mean?

Populary called naked shorted positions or phanthom shares, or counterfeiting of securities?

As you posted: "concerns include the systemic risk posed by CDS, highlighted by the possible inability of parties to meet their obligations as counterparties" which exactly means, failed to deliver.

Then you continued: "Recent credit market events have demonstrated the seriousness of these risks in a CDS market operating without meaningful regulation, transparency..."

Now I would like to understand how sincere are you in fixing and enforcing of the closure of loopholes that alow "inability of parties to meet their obligations as counterparties"

I say this because the same problem of "inability of parties to meet their obligations as counterparties" in equities, which you had complete regulation over for years and years you have not exercised or enforced, in spite of public begging you over and over. It all fell on deff ears.

Your sucess on this matter was evident to the whole nation and the world when in 2008 even the big banks started beeing manipulatively shorted to their knees, so you had to put out emergency rule to ban shorting of any kind in those banks to protect them.

Quoting you:

"15 U.S.C. 77aaa et seq.
4 A nonexclusive list of the Commissions actions to stabilize financial markets during this credit crisis include: adopting a package of measures to strengthen investor protections against naked short selling, including rules requiring a hard T+3 close-out, eliminating the options market maker exception of Regulation SHO, and expressly targeting fraud in short selling transactions"

Hard T+3 close out? you say
Did you really enforce it? NO

Then you say quote: "and expressly targeting fraud in short selling transactions"

My comment to that is that a person will not find one action brough up by SEC where they charged any entity or person with "short selling transactions" or more common failed to deliver, NSS or naked shorted shares, or finnaly counterfeiting of securities.

I see that James Brigagliano Named Deputy Director in SEC Division of Trading and Markets.

As an Associate Director, Mr. Brigagliano has been overseeing the Division's regulatory program in trading practices, including Regulation SHO and other rules related to short selling and market manipulation. He also oversees the clearance and settlement program within the Division, as well as the enforcement liaison function. In his new role as Deputy Director, Mr. Brigagliano's responsibilities will be expanded to include oversight of the Division's Office of Market Supervision, which has responsibility for matters related to oversight of stock and option exchanges.

I have been following the issues of failures to deliver in securities for years. And unfortunately positions of failed to deliver just grew with times, concurently with the mission of SEC which failed to deliver justice, enforcement and fair markets.

Mr Brigagliano failed to deliver, in his job description to regulate trading practices, oversee clearance and settlements, and as enforcement liasion.. as obviously.. there is no success story here.

If your agency has failed to regulate the equity markets of which regulation and oversight of,
what are the chances you will actualy do anything with: CDS market operating without meaningful regulation, transparency...", a market you dont have regulation of?

What did you learn SEC?
Has the tied changed enough with the new president, with senate hearings, with all the exposure of your constant failures and a new chairman Mary Shapiro that the few good soldiers among SEC staff will actualy start fixing and enforcing the rules you as an agency write but have never enforced?

You have faked the trust and hopes of so many with your constant comments pages and rules that only after public realized made no difference because you had no intent to ever enforce them.

You have to do alot of catching up to do to prove to the public with any of your rules and comments pages that you really intend to practicaly apply any of it.
Start with enforcing cover of all naked short positions and all failed to deliver positions in all stock.

And yes, congratulate Mr Mr Brigagliano on keeping his job and even getting promotion, after public and obvious complete failure of the mission SEC as an agency and his job description mission.

And yes please show me one action against any broker dealer or hedge fund or anybody in regards "targeting fraud in short selling transactions"
as you have posted.

I have not found one on your page.
Maybe its because there is none to be found.