Subject: File No. S7-12-06
From: Harry J. Livingston, Jr.

March 26, 2007

I have personally lost all confidence in our stock market after learning that people and entities can sell stock that they have not borrowed and have no intention of borrowing (naked short selling). I have personally purchased stock to see the price hammered down into the ground by these people and entities.

They go away with their pockets filled with money, and I am left with an empty piggy bank. This is nothing less than theft.

I understood that anybody who purchased stock had to pay for it within three days. Or, if they shorted a stock, they had to make some kind of formal arrangements to buy that stock.

The current system is pure counterfeiting and fraud. And the "grandfather" clause is one of the most obvious attempts I've ever seen to protect the guilty.

My comments on SHO are that you should, first of all, protect the investors. Stop people and entities from manipulating the system. Stop ordinary people from being robbed in plain daylight.

If you can do that, you may just win back some of the trust that people used to have in the stock market.