Subject: File No. S7-19-07
From: Thomas W Bierl

July 22, 2008

I am not an accountant or a lawyer. I invest using the markets because the rule of law and enforcement of those rules creates an environment that is trustworthy and fair.

The current reported activities in the markiet significantly alter that trust. Trading involves the assumption of risk to garner potential reward. A trade should encumber resourses upon execution. That should not be different base on size, origination, account type or multiplicity of accounts. If an allowance is made for any external factor, then an opportunity for legal reward without risk is created and it will be exploited. The history of human affairs indicates that it will be exploited. Such activities reduce the market to to a game of chance where I cannot win because the odds favor the house.

It appears to me that the proposed rule creates legal opportunities for such exploitation.

When I listened to "Crime of The Century" Part 5 by Jim Paplava of FINANCIAL SENSE ONLINE, I am discussed by an hedge fund manager's report of his market exploits. When value investing is reported to be of no significance and "moron longs" are merely there to be dubbed into action that feeds manipulative "profit" taking, the fundamentals of the market are at risk. When I receive a letter from the CEO's of twelve of the nation's largest air lines complaining that oil prices are being manipulated by coordinated market activity, I question whether I should be invested at all.

This is not just about the language it is also about preception. The US rules influence and lead the world. If rule making is weak and indecisive then it will be preceived that we will tolerate exploitation. It means the status quo will be preserved. Laissez faire is not a good market mechanism because exploitation is human history. Markets are fair because they are forced to be fair, and that means rules and enforcement.

The rule and comments I read, lead me to believe it does not shutdown the opportunity for exploitation and what maybe worst it appears to be weak response to despicable conduct. It does not pass my litmus test for a fair remedy.