Subject: File No. S7-12-06
From: Phil J. Jannetto, Mr.
Affiliation: Business Owner

April 4, 2007

If the SEC has any conscious and morals, Regulation SHO and the Grandfather clause should be removed immediately. It should never been initiated in the first place.

The main function of the SEC is to "protect shareholders/investors". Systemic abuse and blatant Naked Short Selling has cost investors billions of their hard earned dollars. The SEC failed to take a stand against these practices years ago, and Regulation SHO and the Granfather clause was initated for one purpose, to hide their tracks. It's time you take the high road, admit your failure, and correct/remedy the situation immediately.

Regulation SHO turned out to be a joke, giving a "free pass" to all the Market Makers and Brokers guilty of fleecing the innocent investor, a crimal offense As an example, if an individual failed to pay their taxes years ago, would the IRS turn the other cheek and say "it's OK, just forget about the money you owe us". Enough said

Requlation SHO along with the Grandfather clause is proof to the Market Makers, Brokers, and the innocent investors that the SEC allows and encourages these corrupt practices to flourish in the market place.

The right thing to do is overturn Regulation SHO and the Grandfather clause immediately. It's time to return to the job you were designed to do...protect the investors