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12/23/03 George Hassell, Registered Representative
Jonathan G. Katz, Secretary Securities and Exchange Commission Re: Proposed Regulation SHO Dear Mr. Katz, This letter is in response to the proposed rule change, regulation SHO, regarding naked shorting of stocks. Although the Security and Exchange Commission seems concerned with protecting investors from fraudulent or deceptive trading practices, regulation SHO falls short. The proposed rule change places the individual investor at an extreme disadvantage. While market makers will maintain the ability to establish short positions in stocks with virtually no restrictions, small investors will never have a fighting chance. Furthermore regulation SHO will effectively reduce both market liquidity and market transparency. By further swaying the competitive balance of the marketplace to the side of the market maker, and reducing market liquidity and transparency, regulation SHO is in direct contradiction with the basic principles of a fair and orderly marketplace. In conclusion, if the SEC hopes to restore investor confidence in the markets, regulation SHO only serves to undermine such a mission. Sincerely, George Hassell, Registered representative |