From: Jim Carnes
Sent: July 19, 2006
To: rule-comments@sec.gov
Subject: Comments on proposed Rule Changes to Reg. SHO

Comments on proposed Rule changes to Regulation SHO. I propose the following changes to the rule in order to bring Regulation SHO into compliance with the Securities Laws passed by Congress in 1933 and 1934.

1. Eliminate the grandfather period.

2.Shares MUST be borrowed, not just located.

3.Eliminated multiple loaning of shares. Borrowed shares should be pegged to new sold and not used over and over.

4.Full transparency and public reporting of all FTD data by individual stocks and the of the parties responsible for the failure.

Thank you. In addition I think you should add "Integrity" back into the SEC Mission Statement