Subject: File No. S7-08-08
From: Wayne J Wilson
Affiliation: none

April 14, 2008

"Naked" Short Selling
To stop this the broker-dealer can not sell shares until they have the shares in account or in hand after the clearing period.

The same by be said for short sales. The borrowed share must be owned by the broker-dealer, mutual fund, etc. They can not be borrowed from other share holder accounts and repaid later.