March 29, 2007
The SEC must amend Reg SHO to immediately eliminate the grandfather clause and the market maker exemption. It is unfathomable that the Commission refuses to take reasonable steps (or any steps) necessary to protect the retail investor.
The SEC must go further and require all market makers and specialists as well as every other market participant to timely deliver all the securities they purport to sell, and if delivery is not timely made to immediately buy them in at market prices to prevent settlement failures. T+0
The SEC must stop rewarding market predators who continue to create and sell unregistered securities and in general abuse the settlement process. Don't let them have any of the cash, including any commissions, until they settle the trades. Don't let their clearing firms mark down the prices of shares the participants short as the prices are driven down.
Shut down the DTCC's corrupt stock "borrow" program for good. And finally, start referring these criminals to the U.S. Department of Justice for criminal prosecution for market manipulation and for the counterfeiting of corporate securities, which is what planned, non-incidental settlement failures are.
The retail investor has a constitutional right to be protected by the SEC from the daily bear raids and short side manipulation against victim issuers (and their shareholders) that result from the counterfeiting of securities and so called "naked" short selling. Yet the theft continues as Wall Street makes the Commission look ever more hapless and foolish, or worse, bought and paid for, on these incredibly important issues.