Subject: File No. S7-19-07
From: william f yost
Affiliation: physician

July 19, 2008

I certainly am not legally sophisticated, however, I have seen what I believe to be intentionally criminal effects in metals ans metal stock trading resulting in clearly manipulated results.

As an example it is possible to take a NAKED short position in GLD or SLV, either from a US or a nonUS location and short circuit and commodity position limits. A similar thing is occurring in nearly all precious metals stocks. The evil occurs because some entities are allowed to do this without having or borrowing the stock to cover their position, and the broker is not required to verify that the stocks are held to cover the short. This facilitates manipulation

After all "he who sells what isn't hisn should go to prison"

All this could be easily fixed by requiring that the booking broker physically possess the shorted stock.