Subject: File No. S7-12-06
From: Debi Kiontke

July 23, 2006

The SEC needs to enforce the settlement laws that have been in place to protect investors since 1934. Stocks need to trade on the basic law of supply and demand. When settlement isn't required then supply is unlimited, regardless of demand. This is patently unfair to long investors.

To fix the problem don't separate the money from settlement. If a trade doesn't settle, the broker should not be paid and the customer's funds should be returned.

Borrow stocks before shorting. Enough of this 'locate' nonsense.

It really isn't that difficult to stop the manipulation in the market. A team of monkeys with the motivation of a rotten banana would have succeeded already where the SEC has failed miserably.

IMO-Debi Kiontke