Subject: File No. S7-12-06
From: Paul Floto

September 29, 2006

Who is in charge here?

The DTCC's recent comment letter claims they have no "front end" responsibility. They merely "clear" trades, without regard to whether the broker/dealer selling shares has any shares to sell.

The option market makers claim the right to sell non-existant shares, and never deliver them, to increase the profits they make on option trades.

If "unlimited liquidity" is such a good thing, why does the SEC require companies to file registration statements? If anybody could create any security, at any time, as option market makers have the "right" to do, and as some broker dealers have done in the past, we could have unlimited liquidity of an unlimited number of securities.

Why does any individual who buys over 5% of a stock have to file a 13D, but a person who sells 1,000% of a company's stock not have to file anything?

Why should the comment period ever end, if the SEC never intends to do anything to restore any faith in the integrity of the US financial markets? (I use the word "faith", because clearly there is no objective evidence to support a beliief or expectation that an investor will ever be treated fairly by the crooks now in charge of our markets and market regulation)