From: Janet Douglass
Sent: July 23, 2006
Subject: File Number S7-12-06

Amendment to Regulation SHO:

1. The grandfather clause is in conflictl at 18 U.S.C.A Chapter 25... counterfeiting.

2. The grandfather clause aids and abets counterfeiting.

3. The SEC shall not make any rule or regulation that is in conflict with the U.S. Code. No goverment regulatory agency has the authority to promulgate a rule/regulation that is controlling over the U.S. Code.

In view of the law, it is recommended that this amendment process be ended, and on the SEC's own motion, repeal the grandfather clause to avoid further embarassment of the SEC displaying ignorance of the U.S. Code.

Your immediate attention action to this comment is requested.

Thank You
Janet Douglass