From: Racetelemark@cs.com
Sent: Thursday, May 20, 2004 2:44 PM
To: rule-comments@sec.gov
Subject: S7-23-03:
Sirs, I applaud the proposed rule 203 requirements of the SHO that would apply to 
market makers becoming compliant with the two day action limit upon short sale 
settlements. There does seem to be abuse in the smaller capitalization markets 
where huge extended short positions are held in equities of corporations that 
appear to be victims of  manipulative "cellar boxing." The SEC should provide 
clear rules for maximum protection to guard against market maker actions that go 
beyond acceptable minimal standards to serve the cause of liquidity for customers. 
Small capitalization companies need the protection from an all too prevalent 
incidence of equity price manipulations by market makers. I believe it is in the 
shareholders, and the US economies, best interests to protect against such abuses, 
as these huge extended short positions only serve to stunt small capitalization 
corporate growth, and legitimate shareholder value. 

Christopher Rice