July 9, 2008
It is really very simple. You must start enforcing the current regulations that you have on the books. No amount of additional regulations will help if they are not enforced. So enforcement has to be step 1. The naked shorting and your refusal to enforce your own rules is greatly contributing to the demise of good companies, and hurting investors.
There is plenty of evidence of naked shorting and its negative impact. You are allowing FTD's to go on for ever... Since Regulation SHO has been in place, thousands of securities have appeared on the Regulation SHO threshold list, some have stayed on that list for hundreds of days, and some have never gotten of the list. The companies are victim of NAKED SHORT SELLING and you have failed to take any actions....
The claim on your website of protecting investors is the most hypocritical and inaccurate proclamation by a regulatory agency that I have seen. Your organization is a joke it is at best inept and at worse corrupt. I hope to see real change from you, but I am afraid that congress and the Feds will need to get involve.
I support amendment to rule 203(b) (3) (iii) of Regulation SHO - completely eliminating the close out exemption for option market makers as proposed (not alternative 1 or 2).
I support amendment to rule 200(g)(1)which will require a "locate" on short sales securities and proper marking of sales as "long" or "short".
I also support amendment to rule 200(g)(1) proposed in the second round in release 34-56213 File No. S7-19-07 because equity investors are being harmed from mismarked sales as "long" when they are NAKED short which counterfeits shares--an illegal activity