Subject: File No. S7-19-07
From: Patrick Gallagher

July 17, 2008

I firmly believe 'naked' short selling must be stopped for all stocks, not just the selected financials. This practice harms legitimate short selling which is needed for a stock's liquidity. A stock must first be borrowed before it is sold short, not the other way around. When shares to short cannot be located, the short seller's order should be rejected. The short seller should move onto another stock or use put options.