January 2, 2007
This letter is in response to the request for comments concerning the proposed amendments to Regulation SHO, specifically the grandfather provision and why it should be eliminated.
First and foremost, the Commission should consider its position and recognize that it does not have the legal authority to determine which illegal acts should or should not be forgiven, which it has done by implementing the grandfather provision in the first place.
You must be aware that, failing to deliver a registered security is illegal, regardless of when the transaction or lack there of took place. The Securities and Exchange Commission cannot simply sweep this issue under the rug and hope that the investing public is going to sit idly by, as you continually allow corrupt broker-dealers to pillage our financial system and systematically destroy the integrity of our markets.
Apparently, common sense is not a strong point at the SEC or you have become so complacent in your role, that you have forgotten the primary objective of the SEC, which is to protect investors and maintain a fair and orderly market.
To date, numerous proposals have been forwarded to the SEC for action. Please reference NASAA letter, dated October 4, 2006, from Joseph P. Borg, NASAA President and Director of the Alabama Securities Commission.
Mr. Borg and his staff should be commended for their actions and for providing the SEC with a clearly thought out, direct approach to eliminating illegal activities from our markets. One that will force those who have manipulated our markets to take responsibility for their actions and right the wrongs of the past. This kind of thinking seems to be beyond the ability of the commission. Perhaps that is why we had a comment period. So that the commission could have access to logical, free thinking ideas.
The time for debate is over. The time to review comments has been over for months. It is time to eliminate the grandfather provision and restore investor confidence.
Steven R Parker