September 13, 2009
With regard to the SEC Roundtable, I am very perplexed. As a purchaser of securities, I am 100% responsible for the prompt delivery of funds. There are NO exceptions, Yet, the public regularly reads about all of the loopholes, market maker exemptions, options maker exemptions, grandfathered fails and on and on that prevent a fair and orderly market.
Reg SHO was passed four years ago, and yet did NOTHING to address ex-clearing fails, which could be far greater than anything we have seen. Fails were grandfathered to protect whom? Those who sold and didn't deliver? We know that manipulation takes place by sellers who overwhelm legitimate demand with artificial supply, because the rules of SELLING are weak and not enforced.
We need a hard locate and borrow rule. We need an END to ALL naked short selling. We need a complete clean up of the ex-clearing system so that those companies that have been damaged by artificial dilution can have a LEGITIMATE opportunity to access the public capital markets.
Do we need more roundtables? Do we need to ask the hedge fund industry led by "legendary short sellers" for their opinions on making the markets fair?
What we DEMAND is a LEVEL PLAYING FIELD. NOTHING LESS.
Sincerely
David Salk