Subject: File No. S7-12-06
From: james conway

August 7, 2006

My opinion is eliminate the grandfather clause and be more vigilant in monitoring the delivery of borrowed shares.
Naked short selling hurts the United Stated economy by stifling small companies that bring new technology to market it hurts American investors who believe the markets are operating legally when in fact illegal naked short selling is happening blatantly before the S.E.C.'s eyes.