Subject: File No. S7-12-06
From: Logan L Vaughn

April 4, 2007

The Grandfather Clause of Regulation SHO is an insult to anyone that trades in the U.S. Markets. My 6 year old daughter can clearly see that it is wrong to let someone keep stolen property. That is exactly what FTDs are, stolen property. If money was taken, for phantom shares, it needs to be returned to the market via a buy in of shares on the open market.