July 17, 2008
A few years ago, Robert Shapiro, former Under Secretary of Commerce, pointed out that illegal naked short selling had cost investors $100 billion and driven 1,000 companies into the ground. By now, the cost must have been much higher. In fact, this kind of illegal activities not only impose high cost to companies and shareholders but also damage the reputation of the US securities markets.
Certainly, this is high time to deal with the persistent failures to deliver stocks that had been sold short in order to improve the health of the US securities markets.
I support Release No. 34-58107, Amendments to Regulation SHO, that would dis-allow options market maker exception to the close-out requirement.
In additions, I believe those individuals or companies that have been involved in illegal naked short selling activities should be brought to justice as soon as possible.
Thank you for your kind attention.