From: Penny Hughes
Sent: September, 2006
Subject: File No. S7-12-06

Please stop the naked shorting of small companies that is infecting the stock market.

It is very unfair especially to us small retail investors. I own a stock, CROX, that is presently on the SHO list. It is being manipulated by naked short selling. You can tell by the ridiculous volume of shares that it trades with on news and earnings.

Naked short selling needs to end now because it is outright fraud.

Penny Hughes

St. Pete Beach, FL