Subject: File No. S7-21-06
From: joan oleary
Affiliation: working slave

January 22, 2007

As an independent investor whose belief in the fairness and prevailing standards of our U.S. capital markets is being destroyed, I strongly advise this government oversite agency to radically improve the performance of its fiduciary caretaker responsibilities to the nation's shareholders. This grandfathering of Reg. SHO is nothing but injurious to our market's retail investors while beneficial to inside market makers. These specialists can opportunistically control prices of assets by creating synthetic shares to shortsell. They can collude with broker dealers to sell these bogus shares in the "dirty marketplace" and collect investors' shareprice deposits plus commissions while never delivering the assets correctly into the investors' accounts. These activities are an outrageous abuse of Congress mandated Sec. 17A of US market regulations guaranteeing a fair reliable clearance settlement system. Market makers exemptions, Securities lending interference in free risk/reward market flow and DTCC's inaccurate matching of these loaned and naked shorted securities are ridiculous and an afront to investors' trust in this market system.
The U.S markets may very well lose its position as top capital market. But those of us that experience its mechanizations know its not from "overregulation" but from neglect to apply its oversite muscle and extract meaningful consequences to those opportuniistcally misusing regualtory loopholes. Right now the U.S markets are just a joke for the retail investor with the insider specialists, broker dealers, naked shorters getting all the laughs.
How pathetic this sytem has become. How traitorous to its retail customers.