Subject: File No. S7-12-06
From: David Swartout

March 28, 2007


To Whom It May Concern:

Chairman Cox has already stated publicly that Reg SHO did not work and the Grandfather Clause will be eliminated.
I quote the Chairman below:

"CHAIRMAN COX: Abusive naked short selling is of great concern to the entire Commission, to all of our members and the professional staff at the SEC. The regulation that was first adopted to get after this and related problems, Reg SHO, has proven insufficient to stop the problem. One of the reasons is the Grandfather provision in the rule as it was originally adopted, so we are now setting out, as you know, to eliminate that grandfather provision. And we will do more."
Restore confidence in the system before it falls apart.
What are you waiting on, eliminate that grandfather provision and do more, lets getter done

David Swartout