Subject: File No. S7-12-06
From: Jeffrey S Hughes

February 19, 2007

I would like to ask why the grandfather clause has not been abolished. This act has allowed for the illegal practice of NAKED SHORT SELLING to continue to this day. NSS is nothing but the illegal act of counterfeiting a security. The granfather clause allows for this to continue and drive companies into bankruptcy. Reg. SHO has no teeth and is basically worthless, without proper enforcement. The SEC's job is to protect the investor and not allow major hedgefunds and brokerage firms to run unchecked pocketing trillions of dollars. We as Americans challenge you ,our fellow Americans charged with the oversight of our markets to rectify this situation and get us back on course in order to be able to compete with foreign markets.The task at hand is a simple one, abolish the granfather clause or allow for it's continuance and the eventual destruction of the market and the US economy as we know it. THE CHOICE IS YOURS, WE WILL BE WATCHING.

Mr. Jeff Hughes
concerned US citizen