Subject: File No. S7-12-06
From: American Citizen

April 5, 2007

Chairman Cox:

The Commission must immediately:

Revoke the illegal grandfather clause, WITHOUT phase in period, as failed deliveries have been given overly generous and undeserved notice to deliver already

Remove the options market maker exemption from failing to deliver securities

Remove all other exemptions from delivering securities, including "bona fide" market making

Eliminate the farcical locate requirement

Require a pre-borrow of securities for short sale

Create penalties for mismarking short sales as long sales resulting in failed deliveries

Require daily ACCURATE short interest reporting

Restrict short selling to issues approved by the Commission

Limit short selling in approved issues to a reasonable percentage of the issued and outstanding shares

Pursue substantially increased CRIMINAL AND CIVIL enforcement penalties for violation of Section 17A until there is absolute compliance and the delivery fraud is reduced to zero

In summary, as Rod Young asked you to do over one year ago on February 13, 2006: DO YOUR JOB