From: Rick Stevens [mailto:ssbuild@rockisland.com] Sent: Wednesday, February 18, 2004 9:42 PM To: chairmanoffice@sec.gov Subject: Rule 3370 Please read!! 79 Autumn Lane Eastsound WA 98245 ssbuild@rockisland.com 360-376-4942 Hello, My name is Rick Stevens and I am writing about the recent delay on rule 3370!!! I am just one small investor, who has watched the naked shorting and the collapse on many small business from the effects of the many shares that are sold of their stock, that doesn't even exist!!!! I call them air shares. How can this be happening??? Supply and demands use to run the markets, but as ALL can see it is the MM and their games that depict share price for many stocks!!! I have a message board where I keep up on what the SEC is doing, and for the very most part commend them for their efforts in cleaning up the corruption within American companies, and help to protect investors!!!. The problem I am having is, why did the SEC drop the ball on MMM=market maker manipulation, which has been going on just about as long as corrupt reporting and dealings within American companies?? Naked shorting has become the biggest downfall of the markets, as we know them now!!!! That PR today really took the wind out of my sails, and makes me wonder why I do the work I do to bring what the SEC IS doing for small investors alike. Please take on the Naked shorting issue with a vengeance PLEASE!!!!! A lot of people are not very happy with this delay decision!!! The letter below is form letter, but it says everything I feel on this issue, for I am not the best with expressing my feelings and Opinions!!! I am writing in regards to the NASD decision today 2/18/04 to delay the implementation of the new short selling rule from 2/20/04 to 4/1/04. I am a concerned and troubled by the decision of the NASD for three reasons. First, when the NASD announced this rule implementation last month individual investors, like myself, saw it as a sign that some of the naked short selling abuses would come to an end.Hence we made decisions to hold positions we believed may have been subject to naked short selling and, in some instances, increased our positions in anticipation of the 2/20/04 rule implementation date. Myself and many other investors were hoping that the rule would help market efficiency and the fact that naked short selling abuses has historically been a manipulative tool to keep stock pps down. Second, the decision of the NASD to change their deadline less than TWO days before implementation is not only a complete disregard for investors but sends the message that the NASD is itself not capable to enforcing it's rules and deadlines. Finally, delaying the rule implementation until 4/1/2004 will force investors to make unfair decisions to either hold on to positions that are now being and will continue to be subject to naked short selling or to sell, sometimes at significant loss, because we are losing faith in the ability of the market to act fairly. Who is to say the NASD won't delay the ruling on 3/29/04, two days before the new "soft" deadline. I raise this issue to point out that in the end the NASD gave the excuse about upgrading their technology to handle orders differently. This excuse is bunk, because they have ALWAYS been able to place "normal" orders. I would appreciate a public response to this issue. I've included the link to the press release by the NASD for your convenience: http://biz.yahoo.com/djus/040218/1056000599_2.html Rick Stevens Life is what one makes it!!!