From: Ben Bacque
Dear Sir or Madam:
I am shocked that you feel you require more time to debate over the issue of failures-to-deliver by market-makers legitimate stock trades under the options market maker exception and the grandfathering thereof on as is indicated by http://www.sec.gov/rules/proposed/2007/34-55520.pdf, specifically:
"SUMMARY: The Securities and Exchange Commission is re-opening the comment period on the "Amendments to Regulation SHO" it proposed in Securities Exchange Act Release No. 54154 (July 14, 2006), 71 FR 41710 (July 21, 2006) (the "Proposal"). In view of the continuing public interest in the Proposal, as well as to reflect concerns raised by commenters, we believe that it is appropriate to re-open the comment period before we take action on the Proposal. "
I am a Canadian who invests in US stocks, and am currently extremely suspicious of the trading activity of one of my holdings (INAP on the NASDAQ), which I believe may currently be the subject of naked shorting. By the time it shows up on a Reg SHO list it is too late. I will have been scared away from your market. I wonder what the cumulative effect on overall foreign capital investment this must have!
I believe this issue of not holding individuals and institutions accountable for their trades amounts to theft. I believe the regulation should be simple and effective: "Settle promptly, failing that, deliver a dollar amount equal to the number of shares multiplied by the maximum price in the settlement period." Failing that be charged with theft.
The SEC is doing severe damage both to its own reputation as well as the American economy by failing to address this issue promptly, which has the obvious interpretation by the public of collusion between the SEC and the market makers who will no longer be able to bilk genuine investors.
Thank you for your attention.