From: Katalin de Korompay [katdek@shaw.ca]
Sent: Tuesday, December 30, 2003 3:27 AM
To: Rule-Comments
Subject: File No. S7-23-03

Dear sirs;

To give weight to The Comment Expressed In My Recent Submission
Kkorompay121903.Htm Dated December 19th, 2003 Please Append The Following, Taken
From Sec Release No. 34-42037 (October 20, 1999) File No. S7-24-99.

" .... The Commission Received Approximately 2200 Comment Letters From
Individual Investors Regarding Extending Short Sale Regulation To The Otcbb,
Nasdaq Smallcap, And Pink Sheets. A Large Majority Of These Letters Were
Submitted In The Form Of Mass Electronic Mail. While Many Different Individuals
Submitted These Letters, Most Of The Letters Are Essentially The Same And
Consistently Raise The Same Concerns. The Largest Group Of Letters, Accounting
For Over 2000 Of The Comment Letters Received By The Commission, Focused On
Small Businesses. This Letter Expressed Concerns About Market Makers "Defying
The Laws Of Supply And Demand" And Thus, "Resulting In Plummeting Stock Prices."
The Letter Claimed That The Absence Of Short Sale Regulation On The Otcbb
"Leaves The Otcbb Listed Companies Prey To Market Manipulation." These
Commenters Asked The Commission To Hold The Market Makers "Accountable By
Requiring By Requiring Mandatory Disclosure Of Market Maker Short Positions On
All Otcbb List Stocks."

One Group Of Similar Letters Refers To "Outrageous" Stock Price "Manipulation"
By Market Makers Through The Short Selling Of "Unlimited Non-Existent Shares."
These Investors Asked The Commission To Regulate Short Sales In Otcbb Stocks So
That Everyone Can Play The "Game By The Same Rules." Another Group Of Letters
Exhibiting A Uniform Pattern Complained About " Naked Shorting" By Market Makers
And Offshore Brokers. These Letters Contained Identical Language Referring To
"Penny" Stocks As "Volatile" Due To "Rampant Naked Shorting" That Has Gone
"Unchecked." According To These Investors, Naked Shorting Must Be Abolished And
Reporting Requirements Should Be Established For Issuers. 

Another Group Of Letters State "The Values Of All Otcbb Companies Are Controlled
By The Market Makers." Also, The Authors Stated That Marker Makers Are "Beating
The Will" Out Of Private Investors Because Market Makers Can Naked Short Without
Covering And Do Not Have To Report Short Positions. These Letters Not Only
Encouraged The Commission To Expand Short Sale Regulation To Cover The Otcbb,
But Also To Adopt Reporting Requirements For Market Makers To Disclose Their
Short Positions. While Another Group Of Letters Stated "`Naked Short Selling' Of
Otcbb Securities Should Not Be Allowed."

The Commission Received Many Other Letters From Individual Investors That Did
Not Follow A Pattern But Expressed Similar Concerns. Many Of These Investors
Stated That They Wanted The Short Sale Rule To Apply To Smallcap And The Otcbb
Stocks. These Investors Were Generally Concerned About Manipulation Of
Securities By Short Sellers And The Need For Short Sale Regulation And
Enforcement. Some Of These Comments Expressed Concern About The Effect The
Absence Of Short Sale Regulation Has On Companies Traded On The Otcbb. Others
Commented On The Behavior Of Market Makers And Possible Manipulative Activity
Associated With The Short Selling Of Otcbb Stocks. Many Of The Letters From
Individual Investors Requested That The Commission Require Market Makers To
Disclose Short Positions. .."

My Comment Was: 

It's Outrageous That This Conspiracy Between Certain Brokers And Representatives
Of The Dtc Has Gone On For Years........ With Regulatory Bodies Reportedly
Knowing About It but doing little to stop it. 

Sincerely,

Katalin de Korompay