Subject: File No. S7-12-06
From: Philip L. Healey
Affiliation: Association of Profesional FireFighters

March 28, 2007

Regulation SHO has no chance of operating the way it has been prepared because of the problems with the "GRANDFATHER CLAUSE/PROVISION" that was incorporated several years ago. Chairman Cox has came out several times and stated that "Reg SHO, has proven insufficient to stop the problem. One of the reasons is the Grandfather provision". Is he NOT the CHAIRMAN. If something is WRONG then why CAN"T HE FIX IT ? Please don't tell me it is not in his job description. So my comment about the REGULATION SHO is to get it RIGHT. The naked short issues will never be resolved if the SEC coninues working with the rules at hand. I hold Mr.Cox accountable for this, he is the Chairman and it is his JOB. He has came out publicly and whined about the problems. I have submitted 2 of the comments below. I suggest for the good for the SEC our beloved Country and for Mr.Cox himself to abolish the GRANDFATHER PROVISION and go forward with their proposed plans.

Chairman Cox's comments on the Grandfather Provision.
1. 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.

2. He called the SEC's past efforts to address short-selling abuses "inadequate" since some pre-exisiting short sales were exempted from stricter rules by a "grandfather" clause, and said ending the exemption "will .....ending the exemption "will further tighten" short sales and help eliminate abuses.