July 9, 2008
I support the elimination of the options market maker exception. It is unbelieveable that the SEC instituted this exception, the grandfather clause, and eliminated the uptick rule. Surely, there is someone at the SEC who could have predicted the outcome of such moves.
The Market is the patient, and the SEC is the doctor who is listening to mortician for medical advice, experimenting on a sick person with "cures" that even lay persons recognize as deadly. Why are you waiting to put the patient on life-support and refuse to remove the "cures" that made the patient take a turn for the worse.
Failures to deliver are unnecessary in today's market. Representing security entitlements in customer accounts as real shares is fraud. The value of any commodity should be determined by supply and demand of the commodity, not by speculation in derivatives. When the SEC allowed the options market maker exemption, the SEC didn't have public discussion. This alone is reason for rescission.
Is the extension of the comment period just a way to keep the status quo for as long as possible, benefitting those who are failing to deliver and harming equity investors? If the SEC doesn't act immediately, its tarnished reputation will be further damaged and investors will lose even more confidence in the SEC's regulation of the market, if that is possible.
Extending the period of comment is a revote of something that was overwhelmingly decided the first time. What or who convinced the SEC that delay in correcting the errors was necessary? Do we have to see another large company be taken out in a bear raid?
Thank you for the opportunity to voice my concerns.