July 13, 2007
Mr. Cox - I understand perfectly well that many of the major brokerages and hedge funds have gotten themselves in a bad position. That bad position was attained by useing the "Grandfather" clause in Reg. SHO , with the help of the paid media used to influence public opinion and the Options Market Maker exemption allowing them to Naked Short a stock. I understand that everything you do is directed towards protecting the big money and not towards the retail small investor. I understand that by actually enforceing the laws on the books presently , especially the T+13 close out rule, the result would be huge systemic risk and a very likely stock market melt down which you do not want to happen. A melt down would result in the big money boys loseing too much money. I understand that by delaying the changes to Reg. SHO and not enforceing the current laws you are trying to limit systemic risk and are trying for an "orderly" reset to the present position in hopes that a systemic meltdown will not occur. In short, the SEC is protecting the very crooks that have put the market in the position it is now in and shifting the cost of a bailout to the retail investor. Just like the SL crisis of the past. Mr. Cox it is common knowledge that over 50% of NFI's float is naked shorted with millions of shares Failed to Deliver as evidenced by NFI being on the DTCC threshold list for over a YEAR when the law specifies T+13. And the SEC refuses to enforce the law. The OMM's continue to manipulate the pps on a daily basis. For example look at NFI on July 9th, with a daily average volume of 4M shares, a block of 1.9M shares traded and the pps did not move 2cents. On July 13th with a daily average volume of 4M shares, a block of 660K shares traded and the pps did not move even 1cent. This is blatent "in your face" manipulation by the Options Market Makers directed towards the big money and puts the retail investor at a distinct disadvantage. I'm really getting sick of it. You need to fix Regulation SHO and enforce the law. You need to look into ex-clearing. You need to protect the retail investor.