From: O. Elowe []
Sent: December 16, 2003
Subject: File No. S7-23-03

Attn: Jonathan G. Katz, Secretary
Securities and Exchange Commission

I am writing in regards to my concern over the interest over changing short selling rules, specifically, file no. S7-23-03. I consider myself a trader and investor who has views of both sides of the equation when it comes to short selling. In my view the current system is fair and just and plays a tremendous role in keeping the market in check. Any changes would only upset the delicate balance that prevents stocks from becoming unrealistically priced. I strongly object to the efforts on the part of special interest groups to sway public policy by hiring high priced lobbyists to push the interests of stock promotion groups. These new rules would severely limit the tools of the short seller to place balance into the system. Companies should concentrate more on there businesses and not the value of there stocks. There should be more concentration on the abuses present in the smallcap market on the company side. Abuses that often underwrite unethical and illegal activities in the markets by these same companies that are complaining. Abuses such as cheap stock issuances through the abuse of exemptions; the use over and over of the same transfer agents by scams, and the lack of qualification or financial hurdles to becoming a transfer afent; the ability of comapnies to withdraw from DTC and leave investors stranded; the ability of market makers to continue to quote markets for stocks that have ceased to disclose on a timely basis in some cases for so called "captured clients". My comments cannot better be argued than Lawrence Harris, the SEC chief economist, who has said, "singling out short sellers for possible market manipulation is akin to turning a blind eye to other blatant forms of fraudulent behavior. Efforts to regulate short seling to prevent manipulation have an unsavory impact upon the other type of manipulation which is pump and dump".

O. Elowe