Subject: File No. S7-12-06
From: D. Jackson

September 15, 2006

Regulation SHO as currently written/enforced is meaningless. It's akin to saying, "We have proven you are a thief, but we will forgive you of all your past crimes and if you continue, we will not let you steal from the same people. Also, if you continue to steal from other people, the same penalty will apply."

Fails to deliver (naked shorting) is the greatest atrocity in the markets today and is devastating to small companies and individual investors. It is time to get teeth in Regulation SHO by eliminating the grandfather clause and forcing those involved in naked shorting to cover their fails to deliver. Stiff penalties should be imposed on those who engage in this illegal activity, including criminal charges.

The "hand slaps" being adminstered in the form of fines in the millions of dollars is a joke compared to the theft of hundreds of billions of dollars from unsuspecting investors. Please consider my plea and the pleas of millions of investors.