Subject: File No. 4-500
From: Mark L. Baum, Esq.
Affiliation: The Baum Law Firm, Inc.

May 2, 2005

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;

Dear Mr. Katz and Ms. Sweeney:

As a legal representative of numerous OTC traded companies, as a shareholder of many OTC listed companies and as a American concerned with the integrity of the US public securities marketplace, please accept this electronic message in support of an amendment to the rules affecting short position reporting by NASD member firms.

The cornerstone of the US securities market is transparency and fairness. With greater transparency, the listed companies, financial institutions that finance these businesses and that buy and sell securities issued by these businesses, as well as the existing and future shareholders of these companies, will have the freedom to access critical information that can make or break an investment decision.

The bottom line is that in this day and age, post-Enron/Worldcom/Tyco/Adelphia/AIG ( and so on), how in the world can policymakers deny the marketplace information about Chembio Diagnostics, Inc. (an OTC listed business) that is available about Microsoft (a Nasdaq listed business) or any other non-OTC listed company.

There is no issue in my recent memory that I believe, if acted upon, will help foster the kind of confidence and sense of market integrity that will lead to a more efficient, productive and fair OTC public securities marketplace.

I strongly urge you to make this rule change and continue the spirit of reform that is helping to insure that our markets are the beacon of light for the burgeoning global economy.

Respectfully submitted,

Mark L. Baum, Esq.
The Baum Law Firm, Inc.
A Professional Corporation
580 2nd Street, Suite 102
Encinitas, California 92024
Tel: (760) 230-2300, ext. 205
Fax: (760) 230-2305

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