From: Khorouzan, Tony [mailto:Tony_Khorouzan@jdedwards.com]
Sent: Friday, August 17, 2001 6:47 PM
To: 'marketreg@sec.gov'
Subject: Proposed rules to relax short selling


SEC:

I appreciate your role in overseeing the regulation of the markets.  You
hold a position of trust for the public, so I thought it would be
appropriate for me, a member of the public, to provide you with some
unsolicited feedback.

I understand you (the SEC) are considering relaxing some regulations
on short selling.  I do not oppose short selling, as it can be a helpful
hedging mechanism.  However, I do oppose the method in which it is currently
executed.  Consequently, I am very much in opposition to any rules to relax
the regulations unless they first remedy the current deficiencies.  In
particular, the current regulations permit brokers to loan my shares held
long, without my permission, to short sellers.  Those short sellers often
drive the value of those very same shares I own down to my detriment. The
regulations create an artificial supply of shares which can destabilize the
natural forces of supply and demand.  The loaning of my shares gives me no
benefit, as it may to the broker, and is potentitially harmful to me.

If I am mistaken, please accept my apologies, and direct me to material to
correct my misunderstandings.  Otherwise, please explain what good we hope
to accomplish by allowing distortions of supply and demand, when those
distoration are not necessary?


Sincerely, 

Tony Khorouzan
19863 Kingswood Lane
Huntington Beach, California
92646
+1 714 330 0570