From: Feming1@aol.com
Sent: Wednesday, December 31, 2003 9:07 AM
To: rule-comments@sec.gov
Subject: File No. S7-23-03

Feming Chan 
Trillium Trading 
110 Fieldcrest Ave. 
Raritan Center 1 
7th Floor 
Edison, NJ 08818 

Mr. Jonathan G. Katz, Secretary 
Securities and Exchange Commission 
450 Fifth Street, NW 
Washington, DC 20549-0609

Secretary Katz:

I am writing to you regarding File No. S7-23-03 (Regulation SHO), the proposed 
short selling rule that is currently being commented on.  As an active securities 
trader, I am concerned that Regulation SHO will not have the desired effect of 
creating a more fair market than the current short selling upbid rule does.  I 
believe that when a trader or an investor bids on a stock, his main goal is to 
buy the stock at that price.  It does not matter to him whether he is buying from 
a short seller or from a long seller.  If he is concerned with getting an execution 
sooner, he would most likely prefer that the short seller have the option of selling 
him stock as well as the long seller.  I believe that this will have the greatest 
negative effect on the small individual investor.

Short selling is a part of a fair and equitable market.  While Regulation SHO may 
help to prevent short selling to drive down a market, it also hinders short selling 
all together by making it impossible to short sell at the best consolidated bid.

I believe that the proposed Regulation SHO will not aid in creating a more fair 
and equitable market than the current upbid short selling rule maintains.

Sincerely,

Feming Chan
Securities Representative
Trillium Trading