From: Ryan Marx [caneryan@yahoo.com]
Sent: Friday, January 02, 2004 1:41 PM
To: rule-comments@sec.gov
Subject: Regulation SHO

Jonathan G. Katz, Secretary
Securities and Exchange Commission 
Office of Trading practices, Division of Market regulation
450 Fifth Street NW
Washington, D.C.20549-0609 

Re: Regulation SHO 

Dear Mr. Katz, 



This letter is in response to potential passing of Regulation SHO. In my opinion 
Regulation SHO should be turned down due to the fact that it unfairly benefits 
the market makers by increasing their ability to short stocks while making it 
harder for the smaller player to do so. This regulation would place the regular 
trader at an extreme disadvantage within a profession that strives on competitive 
advantages. Because only market makers would be able to get short stocks on the 
bid, they would easily be able to drive any stock down without the non-market 
making traders and individual investors having a chance to also get short the 
stock and make a profit.

Regulation SHO removes liquidity from the market place and places an unfair 
competitive advantage in favor of the market markers giving them access to all 
the liquidity on the short side when a stock is going down. There would be 
practically no chance for traders to get short once momentum has turned toward 
the downside. I have encountered countless circumstances where market makers drive 
stocks down while making it very difficult for traders to get short. This regulation 
would not only make it difficult, but impossible for the individual trader or investor 
to short sell during down moves. To pass this regulation would only serve to further 
decrease the investor confidence that has been so difficult to rebuild. 



Sincerely, 



Ryan Marx

Registered Representative



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