Subject: File No. S7-12-06
From: Joseph F Stone
Affiliation: Private Investor

March 29, 2007

Reg SHO to should be modified to require elimination of the grandfathered FTD opportunity. The rules should require that all trades settle in the 3 days alloted. The excuse that it will create market disruptions should not be accepted. The only people that will be disrupted are the Naked Short Sellers and those brokers and MM's that currently participate in the illegal activity. The SEC should enforce the law without exception and levy fines of a magnatude that will cause those who violate the law to pay attention. To have a previous hedge fund manager say on national TV that the SEC doesn't get it is shameful but true.