Subject: File No. S7-08-08
From: M Ausper
Affiliation: Buy Side Research Analyst, as an independent investor

June 9, 2008

The final version of this rule should address the exploitation of the Market Makers' exception. I have seen repeated abuses of this exception in the trading of Medis Technologies stock (MDTL), such as is happening today. 1900 call options were traded today, 06/09/2008, at 14:37 on the Philadelphia exchange. This offset a 190,000 block trade of shares at 14:35. As has happened so frequently in the past, these 190,000 shares will be used to drive down the price or cap any incipient rally (likely protecting or benefitting a much larger short position). Since the position will be closed out within 13 trading days, the beneficiary of this trade can skirt the sourcing requirements for shorting shares, even though the options market maker will fail to deliver as it "legitimately" hedges his position. This is one reason why Medis continues to top the SHO list. This is unabashed manipulation of the price of Medis, and such manipulation has repeatedly occurred both to drive down the price in the absence of any news, or to reverse momentum upon the release of good news. Please level the playing field.