Subject: File No. S7-07-08
From: nan v krish

May 16, 2008

Mr. Cox

I have a simple question for you. If your team member in charge of RegSHO list showed you the number of naked short stock companies that consistently make the list,'failed to deliver' for months and some of them for years what enforcement action you would advise the team member to pursue to fix the problem? I have to say you have NO ANSWER because if you had one we would not have a single naked shorted stock making the RegSHO list. SEC has not thought through to fix the problem 'what do we do with RegSHO violators'? How do we track them? Once caught what is the appropriate punishment?
SEC is a reactive regulatory authority and not a proactive authority like Drug enforcement authority or the police that have their own members posing as drug users or buyers to catch the culprits. You have to have a team of members investing in stocks and options like any other small investor and have regular meetings with them to discuss on their findings to keep fixing the problem as and when they arise. What a powerful deterrent this SEC investment team would be for big broker or big money RegSHO violators.
Your investment team can be funded by raising the SEC fee on trades.

Thank you.