Subject: SHO regulation

July 20, 2008

The Reg SHO as written is ineffective and only encourages the naked shorts to other exchanges to get around the reg.

Also, primary dealers should not be exempt as this will be manipulated by the naked shorts.

Why were the limits on shorts only limited to a few financials? This puts the other financials at a disadvantage.

Naked short selling is supposed to be illegal. Why now are you all of a sudden loosely trying to enforce a law that apparently you have ignored.

The up tick rule should be put back into place and SHO needs to be stricter.

Sincerely, John Harbin Memphis TN