April 30, 2007
To whom it may concern,
I am not sure as to why you are soliciting comments from the public regarding Reg Sho since it is a regulation built specifically to reduce, and perhaps, eliminate illegal stock manipulation, e.g., Naked Short Sales and Failure to Deliver Securities.
As I stated in my email to your office on Friday April, 27, 2007, Reg Sho is a plausible start at eliminating stock fraud, however it has no teeth to clamp down on ethically challenged firms and individuals, and my recommendation is that you impose a fine of $10 per Share per Day to any firm or individual who fails to deliver a security. It can be called Reg 10.1.1 and will be enacted only after a short amnesty period (60 days from date of announcement). After the amnesty period, anyone caught failing to deliver a security will be in strict violation of Reg 10.1.1 and subject to the fines imposed.
As for The Grandfather Clause. You CANNOT grandfather in ILLEGAL activity. That is absurd and should not even be considered an option by a governing body. Just look at Overstock.com with over seven (7) million phantom or illegal shares.
Also, as a governing body it is your duty and responsibility to thwart illegal activity, and naked short selling with failure to deliver, and the creation of phantom shares should not be tolerated and should carry the harshest penalties in an effort to eliminate it.
One more thought: Please start examining the trading activities and agenda setting actions of television personalities and their cronies. There is an enormous amount of accusation and suspicion in the online world relating to stock manipulation brought about by these people and the public deserves to know if any of it is true.
Thanks for listening
From - Texas
Favorite Reg Sho Manipulated security - HSOA