July 16, 2008
In regard to short-selling, especially naked short selling, I am of the opinion that very little of it is for legitimate purposes, and that the vast majority is fraudulent abuse of the system. If I were in a position to terminate the options market maker exception, and eliminate one method of destroying small companies, I would. As I understand it, the proposal pending in Release No. 34-58107 would, if approved as a final rule, remove the options market maker exception which currently allows naked short selling, which I feel should be illegal. Please do what you can to eliminate rules that allow manipulation through naked short selling.