From: Sharon B [sharonb@sbcglobal.net] |
This is much needed legislation and years overdue. I truly believe there has been Market Maker Manipulation going on and is continuing to this date. This manipulation is from both Naked Short Sellers and the Brokers who facilitate these sales. Millions of investors have been brought to the OTCBB and Pink Sheet trading arena by the last bear market. Some have lost nearly all their retirement savings and are now exposed to this environment and are not prepared to meet the challenge of investing in a rigged market place. I have read many of the submitted remarks and find agreeing points in all of them. I am sure you will come to the conclusion action is urgently needed. My experience reviewing previous actions by the SEC is that a slap on the wrist will not stop manipulation. A $35,000-50,000 means nothing where millions of questionably illegal dollars are involved. There must be sanctions and suspensions for second offenses where the law is broken. On this date there are open short trades, not closed, and a specific time frame to close these positions should be established. I, and many others, have enquired about the limits of short positions that can be established. The SEC has been asked this question and has not to my knowledge responded with an answer. Some believe the short position in some companies exceeds the authorized shares permitted by the company registration. Regarding the DTCC, they should maintain the "identity type" of accounts for shares transferred into its custody. Shares held in Cash, Excess margin, ERISA and such accounts must not be lent under any circumstance. Brokers must be required to report any new issuance of authorized shares by any company as registered vs. unregistered shares. The DTCC must recognize them as such so as to prevent the sale of unregistered shares. These are crucial steps necessary to make the transaction flow transparent so all can have a fair trading platform. I believe many problems come from accounts off-shore or from Canada. Anyone outside the U.S. requesting access to U.S. Securities Markets must agree to comply in full with U.S. securities and market laws, rules and regulations. I also believe all Hedge Funds must report to the SEC all short positions within them no less than 3 trading days and the information made available on a web site. If those funds are found in violation of existing laws, they should be barred from trading US Securities. I appreciate the opportunity to express my concerns and wish you god speed on this extremely important task of restoring investor confidence in this murky morass of manipulation. SharonB |