Subject: No. S7-24-99. 

Date:    11/14/99 5:04 PM
     
     
G. Extending the Short Sale Rule to Non-Exchange Listed Securities
     
     
Q35. Should we consider extending short sale regulation to cover non-exchange 
listed securities? 
     
Yes.
     
Q36. If so, how should the new regulation restrict short sales? Does the 
current NASD short sale rule provide an applicable model for this purpose? 
     
 Rule 3350 applicable to NASD stocks is an applicable model for this purpose 
and should be adopted.
     
Wesley A. Shields
(510) 865-3158