Date: Wed, 18 Feb 2004 20:40:54 -0500
subject: enforcement complaint

Name:   Catherine Schneider

Naked Short Selling Issue.

There are billions of shares traded per day and the price of the
stock stays the same.

Just watch how the MMs do their trades and watch for their
signals:  100 share traded means i need more shares, 200 means i
need more cheap shares, 300 means something and on and on.

Watch the way otcbb and penny stocks are traded each and every
day, the evidence will speak for itself.

I am writing in regard to the NASD decision today 21804 to delay
the implementation of the new short selling rule from 22004 to
4104.

I am 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 22004 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 have 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 incapable to enforcing its rules and deadlines.

Finally, delaying the rule implementation until 412004 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 wont delay the ruling on 32904, 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.