Dear Sir/Madam:

I believe that the Short Sale Rule should be extended to Non-Exchange Listed Securities

Securities traded in the OTC markets (e.g., Nasdaq Small Cap, the NASD's OTCBB, the Pink Sheets) are presently not subject to short sale restrictions. This frequently results in short sale abuses involving securities.

I believe that the biggest threat to the OTC BB market order is the outrageous stock price manipulation by some market makers and foreign brokerage firms.  Particularly, illegal shorting (creating shares to sell short) is the biggest fraud ever seen in the stock market.  When a company has only about 10 million outstanding shares and some brokerage firms can sell unlimited non-existent shares, market order cannot be established. If the SEC is really serious about protecting the public from any frauds and is willing fight against these big firms, the SEC should regulate short sales in any stock markets as listed stocks. This will ensure that  everybody adheres to the same rules.

Sincerely,

Bob Staunton
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           Bob Staunton
   Oak Ridge National Laboratory
  Lockheed Martin Energy Research
      E-Mail:  anz@ornl.gov
(865) 574-3218,  fax (865) 576-0493
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