Subject: File No. S7-08-08
From: nan v krish

May 16, 2008

SEC your proposed rules will not prevent naked shorting of stocks unless a system is developed that at the instant the first counterfeit naked short share is transacted the system alerts at the Market maker or Specialist level to suspend trading activity pending immediate investigation by SEC to identify the naked shorting culprit be it Market Maker, Specialist, Broker or retail public and throw them into prison. The system should have zero tolerance level on counterfeit stock share. I am sure Hardware and software companies in America will spend billions to develop such a system if SEC requests for it.
I have a question for SEC. Is SEC not curious why on option expiration days thousands of STOCK last price is 'Parked' exactly on some option strike price of the stock? If the market maker sold or bought calls or puts he is going to do everything in his power to precisely 'park' the last price of the stock so that he does not loose a penny on the options. This he does on expiration day when there is no volume. SEC should allow market maker some flexibility to short or buy on high volume or news days for the stock but NOT ON LOW VOLUME OPTION EXPIRATION DAYS. It is unfair for millions of options traders who trade honestly.
We can strengthen SEC'S hands to help change naked shorting rules by highlighting the problem with a 'Million man naked shorting march'.
Thank you.