July 9, 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:
I appreciate this opportunity to provide comments on the Commissions proposed amendments to Regulation SHO. I am a shareholder of a company (CMKX) that never appeared on the Regulation SHO threshold list day after day after week and month after year, simply because it magically came under another of your agency's ad hoc initiatives #8211 #8220The Grandfather Clause#8221, that you have very prudently eliminated after considerable debate. I assume that this elimination of the Grandfather Clause has now elevated CMKX to #8220official#8221 SHO status, however?
I wholeheartedly support the Commission#8217s proposed elimination of the market maker exception and seriously wonder why the Commission has allowed it to exist in the first place, as it#8217s provisions are clearly at complete odds with the Security and Exchange Act. When anyone is allowed to sell something nonexistent and not deliver that something for days, months or years, most folks I know would simply characterize this as THEFT.
It is now becoming apparent that we have lots of #8220THEFT#8221 that your agency has allowed to occur over the years, and here, and once again, your present response to this crisis has been to duck your responsibility to take affirmative action and to protect the market investors and company management from #8220market abuse#8221. To do this, you have chosen yet another comment letter period as your action of choice. Are you (and your Wall Street friends) hoping that a market crash will give you the cover you need to escape your responsibilities and obligations? Shame on you#8230 Many of us had fostered hopes that your agency would want to be seen as part of the solution, and not part of the problem, but that is apparently not to be.
It is clearly long past time for a house cleaning. You will not be missed