From: Jack Fenchel [jlfenchel@zoominternet.net]
Sent: Tuesday, November 11, 2003 2:41 PM
To: rule-comments@sec.gov
Subject: S7-23-03:

Change for short sales is long overdue by the SEC.

Japan, FSA Short Selling

Japanese securities exchange authorities are tightening their supervision 
of short selling, postulating that the practice may be distorting the stock 
market, which has been falling almost continuously for 12 years. 

Late last month, tighter regulations on short-selling were introduced as 
part of efforts to prop up the sagging stock market. 

Under the new rules, the FSA is requiring securities firms to charge fees 
for all loaned shares. It also is requiring investors to give advance notice 
when they borrow at least 300,000 shares, making it harder for them to take 
large short-selling positions. 

Charge for short sales

Japan Securities Finance Co. will charge brokerages when they borrow 
shares for short sales. 

The move, announced Tuesday, comes in response to a request by the Financial 
Services Agency to tighten regulations on short selling. 

The loan fee will be set at 0.4 percent and will be charged on contracts 
starting May 7. 

Meanwhile, the Tokyo Stock Exchange said it will revise part of its 
regulations on margin and loan transactions, asking brokerage firms to set 
appropriate fees when they lend stocks to customers. 

The revision, aimed at improving the use of margin-trading, will also be 
implemented May 7, the bourse said.

By the looks of it Japan market was helped by their new rule changes.

___________________________

Federal securities laws have been on the books in the United States since 
the early 1930s, when Congress enacted legislation to protect investors from 
the type of fraud that accompanied the great stock market crash of 1929. These 
laws are intended to protect shareholders from losses suffered as a result of 
fraud on the part of public companies, their officers and directors, underwriters, 
auditors, and accountants. Securities class actions can involve many different 
types of fraud or misconduct, from corporate misstatements regarding a company's 
revenues, profits, or financial status, to improper accounting manipulations 
that serve to artificially inflate the price of a company's stock. When the 
fraud is uncovered, the stock price often plummets, causing investors to lose 
money. The Federal securities laws provide a means for investors to recover 
some or all of their losses when the losses are due to fraud.For the investor 
whose portfolio has suffered due to the malfeasance of corporate management, 
the expense of a protracted lawsuit involving hundreds of hours of legal time 
and an uncertain outcome is not a viable option.

__________________________ 

The highspeed computers has devastated the 1930 Federal laws.

PC short selling has sent the market into a tailspin and has emptyed long 

investors accounts.

Short selling has sent fraud into overdrive.

Don't blame management because their Company got robbed by Las Vegas, 

short selling.

My opinion, Ban! all Short Selling. Or put a 1% cap on the float.

No! Short Selling of all new IPO's for 1 or 2 years.

With a cap the SEC would only have to enact part of the new short selling  

rule changes.

The US, Economy and Market would surge up! with all the new rule changes 

and if a cap

is put on Short Selling?

God Bless America! 

______________________________

No!  Short Position decrease in sight ...................Increase running 

ramped.........>>

Ticker Company Name Position Increase from past month. 

CSCO> Cisco Systems Inc. - Common Stock 22,273,984 

MSFT> Microsoft Corporation - Common Stock 15,196,463 

INTC> Intel Corporation - Common Stock 12,764,673 

CORV> Corvis Corporation - Common Stock 11,708,758 

ORCL> Oracle Corporation - Common Stock 11,243,796 

ICGE> Internet Capital Group Inc. - Common Stock 11,194,464 

YHOO> Yahoo! Inc. - Common Stock 8,654,239 

QCOM> QUALCOMM Incorporated - Common Stock 7,758,727 

SUNW> Sun Microsystems Inc. - Common Stock 6,188,323 

NXTL> Nextel Communications Inc. - Class A Common Stock 5,377,471 

SBUX> Starbucks Corporation - Common Stock 2,920,136 

Jack Fenchel