July 9, 2008
Dear Chairman Cox,
Ms. Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F. Street, NE
Washington, DC 20549-1090
Re: Comments on Proposed Amendments to Regulation SHO
File No S7-19-07
Dear Secretary Morris:
We are happy that the commission is taking comments again from the public in regards to the Commissions proposed amendments to Regulation SHO.
I am and have been a shareholder of several company's on Regulation SHO threshold list day after day after day and way, way beyond.
Our trust in the system has dropped to a very low point,low enough that that my wife and I are considering getting out of the market to what extent we can.
I support the Commissions proposed elimination of Regulation SHOs options market maker exception and encourage the Commission to complete the administrative steps to accomplish this right now. The options market maker exception has been a well known tool of manipulation and must be eliminated promptly to ensure a level playing field for public companies and shareholders.
I thank the Commissions recent action on the elimination of Regulation SHOs grandfather provision. We are also pleased that over the past several months that Chairman Cox has personally spoken about the abuses of naked short selling and the need to end this manipulative practice. A practice which I believe is nothing more than outright theft. However, I remain concerned that, despite the Commissions recent efforts and Chairman Coxs public comments, these abuses continue as nothing has been done.
While the elimination of the options market maker exception and the grandfather provision will significantly strengthen Regulation SHO, these changes alone will not adequately solve the problem that results in continued naked short selling and failures-to-deliver. I request that the Commission (1) impose in Regulation SHO a requirement of a firm location of shares to be borrowed before a short sale can be executed, and (2) enable transparency by requiring timely disclosure of the volume of failures-to-deliver shares of companies on the Regulation SHO threshold list. The Commission should issue and complete promptly a notice of proposed rule making to implement these two critical components of effective Regulation SHO reform.
The dishonest market makers and brokers who take advantage of this very real flaw in our system need to have the playing field leveled and brought to justice.
There is plenty of inherent risk by nature in the market place, we the investing public just don't need more, via manipulation of any sort.
On the International investment level, I see little reason why they would risk capitol in our corrupt marketplace until it is repaired, risking our world financial trust.
Please take immediate action to protect our capitol assets, make failure to deliver a non-event, and use the FULL FORCE of the Securities and Exchange Commission as an important tool to help restore the REPUBLIC and our TRUST.
Sincerely,
Ken McCune