Subject: File No. S7-19-07
From: C. Rice

September 7, 2007

Dear Sirs,

Please eliminate the options market maker exception.

Let the markets innovate ways to efficiently deliver through trade actual real shares only.

To allow market makers to sell securities which they have not yet purchased, and for them to create what is akin to a "futures-contract" or IOU instead of an actual securities delivery, unbeknownst to the buyer having just paid for real shares believed to be delivered through such trade into their account, obviously well outside of the spirit of Fair and Honest markets.

To take money without delivery in trade is theft.

In my opinion, no securities purchase transaction costs nor fees should be removed from a security purchaser's account(s) until the contracted for securities delivery is verified through publicly accountable and regularly audited clearing agency(s).

It is not an action of fair and honest markets for market makers to do anything other than to immediately deliver an electronic security upon accepting a trade contract to do so. That is why companies issue stock through market makers. There is no Just way around it. The market maker exemption dilutes corporate securities by creating an IOU that appears to be an actual security in the purchaser's account. It negates the effects of what should have been upwards buying pressure upon that security as the MMs do not go into the market to buy what they "sell". And it dilutes the value of all real shares in that security as the IOU's in peoples accounts look and act just like real shares. This in turn dilutes sector, index, and greater economic value.

In this day and age, selling electronic securities without delivering them is tantamount to securities counterfeiting.

Hypothetically, I can buy 100 shares of XYZ, the money leaves my account, I can see 100 shares of XYZ listed in my portfolio, but there may actually be no delivery yet settled into my account. And no real shares may be delivered for weeks and months, or even years That, good Sirs, is Unfair and Dishonest trading practice. It is crooked. Not only should it be stopped,..but there should be much investigation into the connections of those financially benefiting by such Fails to Delivers, and those allowing the deceptive crooked "trading" practice to continue.

Thank you for the opportunity to comment.

Mr. Rice