July 8, 2008
Dear Chairman Cox,
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
File No S7-19-07
Dear Secretary Morris:
Thank you so much for the opportunity to provide comments on the Commissions proposed amendments to Regulation SHO. I am a very disappointed shareholder that doesn't understand how any company could appear on the Regulation SHO threshold list day after day after week and month after year, with out recourse to the violators by the powers in charge. It seems that this has been the norm for the total market instead of an isolated incident with a single company for many years. Just one company, CMKM Diamonds has rumored trillions of illegal naked shorted shares, again this is just one company, trillions of shares.
I an in total support of the Commissions proposed elimination of Regulation SHOs options market maker exception and encourage the Commission to complete the administrative steps to accomplish this change as quickly as possible (e.g., by years end).
The options market maker exception has been a well known tool of manipulation and must be eliminated promptly to ensure a level playing field for public companies and shareholders.
I believe that the actions of professionals in the stock profession have been nothing less than fraud. I believe this is organized crime and they have stolen from every man, woman, and child who has invested in our stock markets or had parents who have invested. I question why the SEC, DTC, DTCC, and everyone involved in our government have looked the other way to a point in time where our very country is in shambles. I belive organized crime should be rewarded with jail time and anyone involved with violators of securities laws who received financial gain at the expense of the everyday people should recieve the same.
I commend the Commissions recent action to strengthen Regulation SHO through the elimination of Regulation SHOs grandfather provision. I am also pleased that over the past several months that Chairman Cox has personally spoken about the abuses of naked short selling and the need to end this manipulative practice. However, I remain concerned that, despite the Commissions recent efforts and Chairman Coxs public comments, these abuses continue.
I believe these rule changes must be made immediately and totally enforced for our country to regain it's position in the world's economy. I can speak for myself and undoutably for thousands of others to say that I will never invest another nickel in our markets as long as the markets are allowed to be manipulated as they are now. As a business owner there is no way I would ever allow my company to be traded, as the risk of ruin would be high for even a very solid company by this illegal trading in our markets.
While the elimination of the options market maker exception and the grandfather provision will significantly strengthen Regulation SHO, these changes alone will not adequately solve the problem that results in continued naked short selling and failures-to-deliver. I request that the Commission (1) impose in Regulation SHO a requirement of a firm location of shares to be borrowed before a short sale can be executed, and (2) enable transparency by requiring timely disclosure of the volume of failures-to-deliver shares of companies on the Regulation SHO threshold list. The Commission should issue and complete promptly a notice of proposed rulemaking to implement these two critical components of effective Regulation SHO reform.
Again, I believe that an adequate 'police force' should be implemented to view these transparencies and that the financial penalties for violators should be stiff and include jail time for the violators of this type of fraud.