Subject: File No. S7-12-06
From: Gene Ellefson
Affiliation: Personal Investor

April 30, 2007

Please amend Short Selling Regulations to NOT Allow un-delivered Short Shares. Please enforce regulations that require short selling shares to be delivered and settled in the same timely manner as a regular sell.

I do not have a problem with the idea of Short selling a stock. I do however, do not think the creation of "Phantom Shares" should be allowed when shares sold short are not delivered.