August 14, 2007
As a small long-term investor in NFI, I have seen first-hand the abuse and unfairness which the options market maker exception allows naked short sellers to wreak on investors and companies alike, and I have come to believe that the options market maker exception should be eliminated completely. As the SEC itself has stated: "We are concerned that persistent fails to deliver will continue in certain equity securities unless the options market maker exception is eliminated entirely. Thus, as discussed more fully below, our proposal would modify Rule 203 by eliminating the exception. In addition, we are requesting comment regarding alternatives to eliminating the options market maker exception that would require fails to deliver in threshold securities underlying options to be closed out within specific time-frames." Failure to eliminate the OMM will inevitably keep small investors like myself from future market investing as we realize how rigged the current system is. Watching NFI's trading patterns has been a real eye-opener for me