Sent: Tuesday, December 23, 2003 3:34 PM
Subject: file no. s7-23-03

Mr. Jonathan G. Katz

Securities ans Exchange Commission

450 Fifth Street, NW

Washington, DC 20549-0609

December 22, 2003

File No. s7-23-03

Dear Mr. Katz,

It has been brought to my attention that the SEC has proposed
Regulation SHO, under the Securities Exchange Act of 1934, to
replace SEC rules 3b-3, 10a-1 and 10a-2. As a proprietary equity
trader, I feel that these amendments would be detrimental to the
overall efficiency of the market. If these proposals were to
pass, there would be a gross disparity between how "market
makers" would be able to short sell stock and the rest of the
market. This unfair situation goes against everything that I have
learned in both my academic and professional life. I plead with
you to please consider keeping the short sale rules as is, for
this is the most equitable situation to ALL in the market.

The proposal of SEC Regulation SHO would do more good than bad
for the majority of the market. With the bid test rule, a short
seller is able to sell at the inside market on an up tick only. I
understand that this rule was put in place to prevent an extreme
down move in the price of a particular stock. The same can, and
at times is, accomplished by halting the stock. Regulation SHO
would in effect, make the movements of a stock even more placid.
It is within the volatility of price movements that the astute
trader can benefit. In order for a proprietary equity trader such
as myself to become successful, we must be able take advantage of
opportunities brought on by varying stock prices. In another
proposal within Regulation SHO, it would become necessary to
first locate every stock prior to putting on a short sale. With
this hindrance in the way, the small window that we as traders
have to make a profit would be closed. It would not only
negatively effect the proprietary wo rld but the market as a
whole.

Thank you for your time.

Sincerely,

Joshua S. Janelli