From: Dean Middleton
Sent: July 16, 2005
Subject: File No. S7-12-06

At this day and age of computers all trades should settle in seconds not days. 3 day waiting period should be plenty of time to settle trades. Option market makers and market makers should settle in 3 days and no less than 13 days period of any failed trade they make. If in options maker has a buyer and a seller of contracts he should not have to hedge anyway unless he is taking on some of the contracts himself. If he is doing this his hedge should be using his own money and settle trades and assume risk as we all do. Option market makers should price their options to midigate some of their risk if they want to assume the trade. I see no reason for any failed trades period. Far as liquidity of the market (It is a myth that market makers and option makers help maintain liquidity.)when a price of a stock gets to a certain point or rather price it will maintain its own liquidity.All trades should settle as Congress has mandated.

Dean Middleton