July 14, 2008
July 14 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 am gratefull for the chance to comment on the Commissions proposed amendments to Regulation SHO. After reading your plea for additional comments on the proposed amendments, I thank you for the plain language document you posted, which allowed myself and others to better understand what the SHO Rule is lacking in order to be effective. I appreciate the oppertunity to make a positive difference for future generations.
Based on data and studies, it is obviously not effective in curbing naked short selling as it stands now. I believe the rule needs to be changed to protect the market from themselves and protect investors at the same time. We are where we are today for the things weve done in the past. I say, protect the market from themselves because the current economic climate is self explanatory in that, the market is imploding and banks, hedge funds, market makers and other participants are cannibalizing each other, as was predicted several years ago. Remove the market maker exception, there is "NO EXCEPTION" it only provides a loophole, which Will and Has been exploited by the greedy. Shut it down and stop the theft.
In addition to the adoption of the proposed rules I implore you to implement the following or it just won't work, failing this, we will continue to experience the same result.
Impose in Regulation SHO a requirement of a participants to "locate of shares to be borrowed before a short sale can be executed". Also, require participants to timely disclose of the volume of failures-to-deliver shares of companies on the Regulation SHO threshold list. In addition, the enactment of the "ANTI-FRAUD" rule. After all, it is a crime, naked shorting is blatant fraud without a legitimate reason for failing to deliver. I don't ever want to read one more time, XYZ Financial Company paid a slap on the wrist fine and I quote, "WITHOUT ADMITTING OR DENYING" allegations of wrongdoing. These amendments you and I have proposed will send a clear message to those who abuse the right to do business with investors....."WE ARE NOT TAKING IT ANYMORE" The Commission should issue and complete promptly, a notice of proposed rulemaking to implement these two critical components of effective Regulation SHO reform.