Subject: File No. S7-19-07
From: Robert W. Raybould
Affiliation: CEO Enteleke Catipal Corp.

September 12, 2007

September 12, 2007

Ms. Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F. Street, NE
Washington, DC 20549-1090

Re: Comments on Proposed Amendments to Regulation SHO

Dear Secretary Morris:

The stock market is dependent on the accurate workings of a supply and demand auction market. However, if naked shorting is permitted, supply will always exceed demand, thus allowing the manipulation of the stock market. A fair price can never be achieved if counterfeiting via naked shorting is allowed to create a false over supply.

Rule 17A of the 1934 Securities Exchange Act, in its descriptive first paragraph (17A(a)(1)(A)), says: "The prompt and accurate clearance and settlement of securities transactions, including the transfer of record ownership and the safeguarding of securities and funds related thereto, are necessary for the protection of investors and persons facilitating transactions by and acting on behalf of investors. In my mind 17A is being violated. Around 1975 Congress passed 17A giving the SEC power to implement regulations for its enforcement. I believe the current proposed amendment is a good step in the direction of curtailing manipulation and counterfeiting in an electronic transfer system.

Naked shorting is not only destroying confidence in the stock market but also destroying new companies, which are the life blood of our economy. Companies are literally destroyed as their depressed stock price leaves them unable to raise needed expansion capital. Targeted companies may not survive, damaging the economy as well as thousands of investors along the way. What company can survive the unlimited counterfeiting of its shares? What economy can survive the unlimited counterfeiting of its currency or the shares of its companies?

In my mind eliminating the option market makers exemption is a step that needs to be taken. My fear however is that the powers of Wall Street who have been creating naked shares will find additional ways to do so. More transparency is needed to protect the public.


Robert W. Raybould
1555 Millcreek Way
Salt Lake City, Utah 84106