Subject: File No. S7-19-07
From: Stephen E Woods

August 13, 2007

The Options Market Maker exemption from the prohibition on selling shares of stock that have not been duly borrowed, which is to say, shares of stock that do not actually exist, must be rescinded in order to prevent the systematic manipulation of stock prices. This is even more simple to understand when the stock in question is on the SHO list for months and even years at a time. It's there for a reason, and that is that the need for liquidity is being abused, and many times on a massive scale.

If the SEC will assign a team of observers to watch stock trading on a minute-by-minute basis for even a few weeks in such stocks as NFI, which, by way of disclosure, I do own, it can be easily seen within a short time the relationship of price pressure to the massive blocks of counterfeit stock being dumped on the market on a daily basis.

As long as the OMM exemption exists, stock dilution caused by such massive dumping will continue, making a mockery of companies' real value and ignoring the basics of the law of supply and demand. Unlimited supply = worthlessness.