Subject: File No. S7-12-06
From: G Covington

July 23, 2006

Congress mandated in Rule 17A of the 1934 Securities Exchange Act that our markets have prompt, accurate clearance and delivery.

Regulation SHO is nearly a complete failure and a bad idea.

Grandfathering of FTD's was wrong. There is no reason to mask new proposals. To recind the regulation for "securities that qualified for the Threshold Securities List", when all FTD's were Grandfathered prior to last of December, 2004 is double talk. The stock borrowing proceedure is and has been abused for decades.

A large and growing public interest is paying attention to these proposals, as well as, serious related issues that are in our face. No more fluff, please.

For some, there may never again be such a gracious opportunity to correct error.