Subject: File No. S7-12-06
From: Peter Ritchie

April 4, 2007

Regulation SHO and the Grandfather Clause.

To Chairman Cox and the SEC ,
you have already recieved input from State Governors , Legislators , the U.S. Chamber of Commerce , CEO's of companies negatively affected by failure to enforce laws to protect investors from fraudulant practices within the market , and from individual investors at a loss to the lack of common sense enactment and enforcement of Regulation SHO and the failure to quickly eliminate the Grandfather Clause.

The reasons given for an extended period for comments only supports the Commission's proposed amendments to Regulation SHO and the additional steps needed to reduce abusive short selling, delivery failures, and shareholder disenfranchisement. I encourage the Commission to move quickly to adopt the proposed changes to Regulation SHO, quickly eliminate the Grandfather Clause,amend the options market maker exception to require that delively occur promptly after any underlying options positions have expired , and to re-read comments and suggestions such as those offered by the U.S. Chamber of Commerce, and the Governor of Utah.

The delay to act on your own findings and those offered by private investors , business representatives , and elected government officials is not acceptable.

Did you need more real time evidence of mis-use of the system ? There is a company listed 52 Consecutive Market Days. On List as of 01/19/2007 Through 04/03/2007. The company is in the process of paying off a loan. If paid in stock, it is now valued at the lower of either x cents a share or a 7% discount to the average of the two-lowest daily-volume-weighted average prices during the five days immediately following the scheduled payment date. What that means in the real world is that someone can short the stock, depress it for two days, and get a lot more shares. After alternative financing backed out at the last minute , it wasn't long until the Company was listed on SHO and still is , even though millions of shares are issued each week to pay off the loan. FTD's , failures to deliver ? No , failure of the Commission to protect investors and new businesses from fraud.