April 5, 2007
Chairman Cox:
The Commission must immediately:
Revoke the illegal grandfather clause, WITHOUT phase in period, as failed deliveries have been given overly generous and undeserved notice to deliver already
Remove the options market maker exemption from failing to deliver securities
Remove all other exemptions from delivering securities, including "bona fide" market making
Eliminate the farcical locate requirement
Require a pre-borrow of securities for short sale
Create penalties for mismarking short sales as long sales resulting in failed deliveries
Require daily ACCURATE short interest reporting
Restrict short selling to issues approved by the Commission
Limit short selling in approved issues to a reasonable percentage of the issued and outstanding shares
Pursue substantially increased CRIMINAL AND CIVIL enforcement penalties for violation of Section 17A until there is absolute compliance and the delivery fraud is reduced to zero
In summary, as Rod Young asked you to do over one year ago on February 13, 2006: DO YOUR JOB