Subject: File No. S7-19-07
From: Anonymous Investor

August 28, 2007

The Securities and Exchange Commission needs to be aware of the fact that there is a concerted campaign to influence the course of this rulemaking process.

I refer to, at

It states, in pertinent part:
(begin quote)
The following is a letter I suggest everyone send to the SEC, via their website request for comment, on that exemption. It has my complete and total endorsement, so feel free to copy it verbatim, or to modify it as necessary.

You can submit it painlessly and electronically here: to Regulation SHO


August ___, 2007

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 the opportunity to provide comments on the Commissions proposed amendments to Regulation SHO. I am a shareholder of a company that has appeared on the Regulation SHO threshold list day after day after week and month after year.

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 change as quickly as possible (e.g., by years end). 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 commend the Commissions recent action to strengthen Regulation SHO through 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. However, I remain concerned that, despite the Commissions recent efforts and Chairman Coxs public comments, these abuses continue.

While the elimination of the options market maker exception and the grandfather provision will significantly strengthen Regulation SHO, these changes alone will not adequately solve the problem that results in continued naked short selling and failures-to-deliver. I request that the Commission (1) impose in Regulation SHO a requirement of a firm location of shares to be borrowed before a short sale can be executed, and (2) enable transparency by requiring timely disclosure of the volume of failures-to-deliver shares of companies on the Regulation SHO threshold list. The Commission should issue and complete promptly a notice of proposed rulemaking to implement these two critical components of effective Regulation SHO reform.




cc: Christopher Cox, Chairman, U.S. Securities and Exchange Commission

Paul S. Atkins, Commissioner, U.S. Securities and Exchange Commission

Roel C. Campos, Commissioner, U.S. Securities and Exchange Commission

Kathleen L. Casey, Commissioner, U.S. Securities and Exchange Commission

Annette L. Nazareth, Commissioner, U.S. Securities and Exchange Commission
(end quote)

The Naked Short Selling campaign is promulgated by small companies that are seeking to find a scapegoat for their own poor share price performance. Its tactics include organized letter writing campaigns such as this. The SEC should be aware of the tactics that are being used in furtherance of narrow corporate interests.