From: Karl Schreiber
Sent: July 20, 2006
Subject: file s7-12-06

Dear SEC Commissioners:

This SHO issue seems pretty complicated, but really has a very simple solution. SETTLE THE TRADES in a timely manner: not T-10, not T+13, not T+NEVER. Even T+3 is stretching it with the massive computer systems T+now in place. If trades could be settled in T+3 before computers, they can surely now be settled in T+3, or less.

Significant penalties should be imposed for those not settling in a timely manner. Infact, I have not been impressed with any penalties the SEC has levied against lawbreakers in the past. You need to make the criminals pay big time to correct criminal behavior. Where investors have been hurt, restitution should be made to them as well.

I, as a small investor, just want a level playing field. Congress, after the market crashes in the late 1920ís and 1930ís, came together to attempt to regulate a fair market. The SEC was tasked with using those rules to regulate the markets for the benefit of all investors, not just the privileged few. What has happened? Your organization as a whole seems to be dysfunctional. ENFORCE THE RULES!! It is really that simple.

Thank you,

Karl Schreiber