To: Rule Comments
From: David L. Rake

This is in reference to SEC File No. 4-500. Request for Rulemaking Regarding Member Records of "Short" Positions and Reporting and Public Dissemination of Aggregate Positions by Security, a very important rule change that is needed to improve the OTC marketplace.

It is the responsibility of you as regulators, to turn on the lights and protect investors from the menace of hidden short selling in the OTC market and end the devastating impact that small companies face when their market is tarnished by the threat of manipulation.

You have, for years to this point, and contrary to the purpose of your existence, turned a blind eye to the crisis facing the OTC market today, in the lack of short sale position reporting and disclosure for OTC issues. This lack of transparency regarding short selling in the OTC market allows fraudulent acts to go undiscovered and manipulative short sellers to hide.

You as the appointed regulators should fix the problem. Small issuers traded on the Pink Sheets and the OTCBB deserve the same transparency and regulatory oversight of short selling as those listed on Exchanges or NASDAQ.

It is up to you, the SEC, to cause the amendment of NASD Rule 3360 and require NASD broker dealers to maintain a record of total "short" positions in all customer and proprietary firm accounts in all publicly traded equity securities as well as report this information to the NASD for public dissemination of the short positions by security. The SEC's action is urgently needed to prevent fraudulent acts, expose market manipulation, promote fair principles of trade and protect investors.

I support the Pink Sheets' Request for Rulemaking Regarding Member Records of "Short" Positions and Reporting and Public Dissemination and insist that, I, as an investor in Pink Sheet and OTCBB shares have the rights, without discrimination, to the same protections and oversight governing the larger exchanges.

David L. Rake