Subject: File No. S7-12-06
From: Thomas A. Walstrom
Affiliation: Private Investor, retired citizen

July 20, 2006

The "grandfathering" clause of Regulation SHO has been a
cruel joke foisted upon the investing public by the SEC
that has cost investors untold billions. In order to provide some balance the following changes need to be enacted:

1. Immediately cancel the grandfather portion of Reg
SHO and require buy-ins of all FTDs from January 1,
2005, forward to the present. The SEC did not have
the authority to forgive FTDs

2. Require a locate for any borrowed stock prior to
the loan of stock.

3. Require settlement of the trade in T+3 with no
cash released until locate completed.

4. Refocus the mission of the SEC toward integrity
and trust in protecting shareholders interest, not
big brokerage houses or hedge funds