Subject: File No. 4-500
From: Lawrence A. Guinness, President
Affiliation: Guinness Telli*Phone Corp.

May 2, 2005

To the attention of:

Jonathan G. Katz
Secretary, Securities Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549


Barbara Z. Sweeney
Senior Vice President and Corporate Secretary, NASD
1735 K Street, NW
Washington DC 20006-1500

I am writing to alert you of a very important rule change that is needed to improve the marketplace for the sale of securities and protect investors from the menace of hidden short selling in the OTC market not to mention the devastating impact that small companies face when their market is tarnished by the threat of manipulation.

There is a 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.

I believe 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.

Therefore, through this email, I am petitioning 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 will continue to track your performance and diligence through the NASD.



Lawrence A. Guinness
Guinness Telli*Phone Corp.
P.O. Box 1088
Tiburon, CA 94920
Phone: (415) 435-1280
Fax: (415) 435-5291
Stock Symbol: TELI