July 10, 2008
Re: SECURITIES AND EXCHANGE COMMISSION 17 CFR PART 242 [Release No. 34-58107; File No. S7-19-07] RIN 3235-AJ57 Amendment to Regulation SHO
Dear Chairman Cox,
I am happy that the commission is taking comments again from the public in regards to the Commissions proposed amendments to Regulation SHO. I am a CMKX shareholder and have been a shareholder of several companies’ on Regulation SHO threshold list day after day after day and way, way beyond. My trust in the system has dropped to a very low point, low enough that my wife and I are considering getting out of the market to what extent we can.
I support the Commissions proposed elimination of Regulation SHOs options market maker exception and encourage the Commission to complete the administrative steps to accomplish this right now. 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 thank the Commissions recent action on 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. A practice, which I believe, is nothing more than outright theft. However, I remain concerned that, despite the Commissions recent efforts and Chairman Cox’s public comments, these abuses continue as nothing has been done.
I support elimination of the Market Makers exemption.
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 everywhere but within the SEC.
The dishonest market makers and brokers who take advantage of this very real flaw in our system need to have the playing field leveled and brought to justice. There is plenty of inherent risk by nature in the market place, we the investing public just doesn’t need more, via manipulation of any sort.
On the International investment level, I see little reason why they would risk capitol in our corrupt marketplace until it is repaired, risking our world financial trust.
Please take immediate action to protect our capitol assets, make failure to deliver a non-event, and use the FULL FORCE of the Securities and Exchange Commission as an important tool to help restore the REPUBLIC and our TRUST.
Sincerely,
David Swartout