From: ClockworkChaos@aol.com
Sent: Friday, January 02, 2004 12:28 PM
To: rule-comments@sec.gov
Subject: file no. S7-23-03
Mr. Jonathan G. Katz
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609

Mr. Katz:

I am writing in response to Regulation SHO currently being proposed by the 
Securities and Exchange Commission.  I am an independent trader with 120,000 
dollars in my trading account.  I feel that the majority of this rule is 
unnecessary and will disrupt trading activity.

The largest problem I have with this new proposal is the "Bid Test" portion. 
As an independent investor, if I place a high bid in any stock, it is of no 
importance to me whether someone is selling me the stock to reduce their long 
position or to get short.  In the same respect, as long as there is a green 
arrow and the security is borrowable, I feel it is my right to get short by 
hitting the high bid.  I realize that these proposed rule changes are to prevent 
dramatic downturns in stocks caused by short selling, but I feel that in actuality, 
this new rule will be creating an unbalanced market.  As a small independent 
investor one of my only advantages is the speed in which I can get in and out of 
long and short positions.  By implementing the "Bid Test" rule this will take 
away approximately 30% of my daily strategy, which will ultimately lead to loss 
in profits.  The only people who I feel would benefit from this proposed rule 
change would be the large institutional investors who are looking for the slower 
move in a stock and do not want to see any short term fluctuations in the stock.  

One section of the proposal which I feel is fair is the "Pilot Program" where any 
individual is able to buy or sell, to get long or short, any security at any time 
regardless of up ticks or down ticks.  While this Pilot Program would only include 
a limited number of securities, I feel this could easily be applied to all 
securities.  The purpose of the Securities and Exchange Commission is to maintain 
a fair and equal opportunity market.  Nothing seems more fair and equal opportunity 
to me than to be able to get long or short a security at any time as long as there 
is another party willing to execute the trade.  


Sincerely,


Gregory Kleiman