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DAR Takes Stand on Criminality of SHO>

Location: Blogs Bud Burrell - Front and Center    
Posted by:   bburrell 1/20/2007 11:44 AM

URGENT MATTER:

Co~lgressmanBarney Frank via fax 202-225-01 82

Senator Robert Bennett via 202-228-1 168

Senator Christopher Dodd via fax 202-224-2823

Senator Bill Nelson via fax 202-228-2183

Senator Arlen Specter via fax 202-228-0608

Senator ~harles"~xassv1iea~ fa x 202-224-6020

Senator Orti11Watch via fax 202-224-633 1

Senator Joseph Lieberman via fax 202-224-9750

House Financial Services Committee via fax 202-225-6952

Senate Banking and Finance Committee via fax 202-224-5137

Judiciary Committee via fax 2 0 2 - 2 2 4 M qS\b

Re: elimination of the illegal grandfather clause 203(b)'(3)(ill release no 34-54154

The above-referenced regulation a/k/a the counterfeiting clause is often referred to as the 'grandfather clause' as it eliminated all failures to deliver on short sale transactions prior to 1/3/05 thereby converting un-borrowed securities sold short into counterfeit securities.

IT FAILS AGAIN. In December 2006, the SEC was supposed to have eliminated this goss miscarriage of justice, pursuant to its unified schedule, with a final vote. In December, the SEC's opea meeting greeted investors and CEO's of affected companies with yet another unjust postponement of the elimination of this

illegal regulation. Our investment goup was outraged at this unlawful decision. The regulation is illegal and not one person on the face of this earth can make any valid argument to the contrary.

NO EXCUSE.  Apparently, the SEC received over 300 comments. So, despite the illegality of the regulation,two years of review and outrage over the illegal grandfathering in of failures to deliver, the vote did not take place. Counterfeiting is alive and well at the SEC.

THE SEC APPEARS TO KNOW this regulation is illegal as evidenced by this revealing question published

in the Federal Register July 21,2006: Is a 35 settlement day phase in period necessary as firms will have been put on on notice that they will have to close out previously grandfathered fails following the effective date of the amendment? Currently the firm of O'Quinn known for its infamous successful prosecution of tobacco companies is runored to have a 4 trillion dollar law suit against the DTC and/or the SEC for this crime.

NO MORE DELAYS in exterminating this unlawful regulation are accqtable. American and foreign companies listed on US exchanges have been violated, raped and pillaged with the appalling erasure of the obligation for the short seller to deliver on unbonowed securities sold into the market prior to 1/3/05.

SECURITIESSOLDSHORTinto the market place unsecured by borrowed shares are now counterfeit. The grandfather clause is tantamount to Hitler's holocaust only instead of slaughtering people, the grandfather clause hid slaughtered companies.

COUNTERFEITING is clear and unambiguous. Individuals the world over understand counterfeiting is illegal. With millions of investors suffering this two year outrage, and the SEC's clear refusal to right this homific wrong, the SEC has proved itself to be an abomination to US capital markets. It should be abolished.

The SEC has single handedly butchered the 1933 and 1934 Exchange Acts by amending those acts out of effectiveness and rendering them worthless. The SEC,not only does not protect investors, it facilitates financial abuse of investors. The SEC has no effective enforcement of short selling muck ever since it separated the settlement of cash from the delivery of the securities.

 

FIRMS WAVE BEEN ON NOTICE that previously grandfathered fails will have to be closed out. In the first place, the SEC had no right to implement an illegal regulation and it has even less of a right to betray investors, by engaging in dereliction of duty, as it endlessly prolongs its obligation to eliminate what appears to be an illegal financial act of treason against the United States of America.

OBSTRUCTION OF JUSTICE. First, the country suffers the SEC's dabbling in the business of counterfeiting securities with its notoriaus illegal grandfather clause. Now, the SEC appears to want to add obstruction of justice to its criminal resume as evidenced by its apparent refusal to finalize a vote for the elimination of the illegal grandfather clause.

RENEGADE SHORTSELLERS.Prior to the illegal 'grandfather' clause, at least a legal obligation for renegade short sellers to borrow securities sold short into the market place existed. The SEC's illegal grandfather clause removed that legal obligation for all shares sold short prior to 1/3/05. Now there are bilions of securities parading around the marketplace masquerading as legitimate shares. Market caps and share structures in hundreds, if not thousands, of affected companies have been decimated by this clearly illegal regulation.

CASTING SHAMEupon the US capital markets, the SEC,with powers bestowed upon it from the US Government, arrogantly implemented an illegal regulation which it continues to refuse to eliminate even though firmshave been on notice that previously grandfathered fails will have to be closed out. The illegal regulation, the grandfather clause in regulation SHO,caused to be counterfeit those securities sold short against unborrowed securities on all. shares sold short prior to January 3,2005.

TWO YEARS OF REVIEW and the kept SEC maintains some are opposed to the elimination of this illegal act. Who in their right mind supports counterfeit securities sold into the marketplace prior to 1/3/05, the short sellers? T%e US Capital Market has been debased by the illegal grandfather clause, rule 203 (b)(3)(i).

BILLIONS IN COUNTERFEITSECURITIES conthue masquerading as legitimate,securities courtesy of thc impudent SEC and its seemingly intentional procrastination of eliminating the illegal grandfather clause.

One wonders how a single inept repugnant agency has the power to destroy our financial markets by its charitable contribution of billions in counterfeit securities into the marketplace, distorting price, floats, market caps and voting rights in all affected companies.

AMERICA'S CAPITAL MARKETS LOSTtheir integrity, thxu the duplicitous andlor negligent acts of the SEC and the failed oversight of that degenerate regulatory agency. AS A DAUGHTER OF THE AMERICAN REVOLUTION, I am repulsed at the corruption in this once upon a time fine Government of the United States. The founding fathers did not go to war for this corrupt, immoral, putrid government of greed.

IF SOME EXTREMELY WEALTHY investors become less wealthy because they we forced to cover their previously exempted failures to deliver [short sales], well that is just too damn bad. It is the law. Brokers, hedge funds and short sellers are not exempt from the law. The SEC had no right to exercise such tremendous unilateral power with perhaps billions of dollars in consequences to long term investors in the affected companies. The grandfather clause is illegal on its face. There is no need for review unless the SEC is covering up a crime.

PICK UP THE PHONE. Direct Chairman Cox to cease and desist with this illegal criminal. act and eliminate the illegal. grandfather clause today. Chairman Cox can be reached at 202-55 1-2 100.

In D.C. two weeks ago, I walked past the Department of Treasury which is now a museum since Congress handed over control of our money to only God knows who. Then there is the Capitol. The Capitol Building was a monument to American fkeedorn when 'we the people7 decided the laws of the land. This once meaningful institution has been relegated to a land mark.

Today, the Capitol is tarnished by the presalce of elected officials who do little more than work 180 days to accomplish whatever the lobbyist de joux is peddling. Where is Congressional oversight when a former director of Market Regulation at the SEC can turn failures to deliver on short sales prior to 1/3/05 into counterfeit securities. Apparently, Congressional. oversight is absent. America is no longer the land of the free and the home of the brave but the land of the greedy and the home of the cowardly Congress.

INCIDENTLY, the repeal of the Glass-Steagall Act was another fatal mistake for the markets along with Congress handing over the power to establish margin requirements fox brokers to the Federal Reserve, a private banking cartel which is no Inore 'Federal' than Federal Express. The 1933 & 1934 Securities Exchange Acts were well constructed instruments to ensure integrity in the US Capital Markds by men with integrity that have been amended out of effectiveness by self-saving despicable greed driven white collar degenerates.

God save America,

Sheri Turner, CPA

USA

cc: Hon. Christopher Cox, Chairman via fax (202)-772-9200

Hon. Paul Atkins, Comxnissioner via fax (202) 772-9330

Hon. Roe1 Campos, Commissioner via fax (202) 772-9335

Hon. Annette Nazareth, Commissioner via fax (202) 772-9340

Hon. Kathleen Casey, Commissioner via fax (202) 772-9345

Dr. Erik Simi,.Dixector, Division of Market Regulation via fax (2021-772-9273

Dan Gallagher via fax (202) 772-9330
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Comments (18)
Re: DAR Takes Stand on Criminality of SHO> By Catfish on 1/20/2007 4:01 PM
The above is so poorly formatted and transcribed.... If that was run through OCR software you might consider some different software. Here's a link to the original:

http://www.sec.gov/comments/s7-12-06/s71206-376.pdf
Re: DAR Takes Stand on Criminality of SHO> By SteveM on 1/20/2007 4:01 PM
So much for Optical Character Recognition. But weget the gist. The link to the FAX is at
http://sec.gov/comments/s7-12-06/s71206-376.pdf

If, starting Monday, Reg SHO listed companies were protected from ANY additional naked shorting by the Gang of Thieves, share prices would recover without any additional shares being bought in. Without fixing the past wrongs, future wrongs could be prevented. The SEC won't let even that happen.
Re: DAR Takes Stand on Criminality of SHO> By ckza on 1/20/2007 10:59 PM
Wow! We need more women like her in America today. What a potent contrast to the politically correct, bought and paid for Hillary's of the world, who find pleasure in hiding truth from the people.

I would bear arms to protect this DAR-ling at home or abroad, any day this century.

"Give me liberty or give me death."

When will these robber barrons be met head on with lights shone upon their evil, stealth worlds?




Re: DAR Takes Stand on Criminality of SHO> By Sean on 1/20/2007 11:00 PM
Some more on Ms. Turner

Subject: 203(b)(3)(i) is a felonyJanuary 2, 2007
With all due respect, the SEC has no authority to turn failures-to-deliver prior to 1/3/05 into counterfeit securities by grandfathering failures-to-deliver into the marketplace.
Reading over 300 comments in response to eliminating the felonious illegal grandfather clause is a waste of time. The clause is a felony in and of itself and of course it will be eliminated.
Thomas Jefferson, James Madison, George Washington, Benjamin Franklin and the founding fathers, whose freedom you enjoy everyday, never intended for the United States Government to appoint a corrupt agency (the SEC) to run a crooked casino for the Wall Street Bankers.
When a person or entity engages in a crime by selling that which they do not own and have not borrowed, that person or entity must also accept the consequences of buying back what they had no right to sell in the first place. It is too bad that the perpetrators of the crime will lose money. Such are the inherent risks in the marketplace.
No further statistics regarding Regulation Sho are necessary. Regulation 203(b)(3)(i) is an illegal exception to the mandatory close out rule. I am surprised that professionals of your alleged caliber are having difficulty comprehending the obvious.
The SEC became guilty of counterfeiting and subject to RICO charges the moment the SEC had the audacity to transform failures-to-deliver into counterfeit securities by exempting the inevitable failures-to-deliver, prior to 1/3/05, from being closed out.
Counterfeiting 101
Sheri Turner, CPA
Re: DAR Takes Stand on Criminality of SHO> By bburrell on 1/21/2007 9:49 AM
From a friend and source of mine:

DAR? Not hardly, IMO. This was a comment letter faxed to the SEC and the Congress from none other than "abadgoodgirl"....a CPA from Florida, and a CMKX shareholder.

While she is an intelligent lady, she is a bit of a loose cannon, who has accused you, personally, of reading and copying her comments about the "grandfather clause" being a form of treason. She has insinuated that you read the message boards and are copying her ideas, LMAO. Needless to say, her campaign against the SEC began less than a year ago.....and she has the audacity to believe she is the first one to imply "treason".

She does not post on our board, but on RB and the millionaires board......and she is a supporter of "accadacca", and believes in the "Wanta" trillions being directly related to CMKX.

http://cmkxunitedforum.proboards70.com/index.cgi?board=general&action=display&thread=1168394293&page=1#1168394293
Re: DAR Takes Stand on Criminality of SHO> By pjstevenson on 1/21/2007 1:02 PM
An update to an Executive Order has been posted on the White House web site...apparently signed off by President Bush.
This has not made it into the mainstream press...yet.
Was this released on Saturday for a reason?
The modificaitons appear to address the grandfather clause!
But, I we will have to read this more closely before taking a position.

If true, this should lead to some news from from the SEC this week.

Here's the Executive Order (changes):

http://www.whitehouse.gov/news/releases/2007/01/20070118.html

Here's the new amendment in full and complete text (post-changes):

http://www.cmkx.net/forum/viewtopic.php?t=15390
Re: DAR Takes Stand on Criminality of SHO> By Sean on 1/21/2007 5:18 PM
I don't know what axe to grind this friend of yours has against this lady .. whoever she is but I am appreciative of her efforts to help stop this crime. I don't believe that everyone has to agree with you Bud, but as long as they don't disrespect your blog (which she has'nt) why should anyone have anything negative to say about her, whoever she is. If we could get every shareholder/market participant investor to do what this lady has done I think the SEC would have been dismantled along time ago. And te damage they have done would not have been as great.
Now for a more on topic question What do you think about this repeal of the Grandfather Clause as indicated In the above post?
Re: DAR Takes Stand on Criminality of SHO> By bburrell on 1/21/2007 5:22 PM
I trust the source of the comment from long term totally constructive contact.

Re: Repeal of the Grandfather Clause, I spoke to a respected journailist on this last week who had just been informed by her sources that May sometime was now the date.

If they do it now or then, I win either way, so I really don't have an opinion.

I imagine they are really scrambling to find a solution that doesn't cost them their jobs at a minimum. Were I to have my way, I would take their pensions first, then send them to the one-eyed glutton in a nasty but deserved head fake.
Re: DAR Takes Stand on Criminality of SHO> By bburrell on 1/21/2007 5:25 PM
On nasty posts:

I get plenty, but if they are neither germane nor constructive, or if they are a personal attack on me or the people who post, I delete as a management practice.

I have had a number of good comments on the managment of my blog, and I expect to continue to earn them.
Re: DAR Takes Stand on Criminality of SHO> By piddly_sum on 1/22/2007 8:32 AM
I know the real reason the SEC will take as long as possible to eliminate grandfathering, but what logical reason can they give for the delay?

Either it is wrong and should be eliminated, or it is not and should stay, but why wait until May? Everybody has been put on notice at this point to expect the change.
Re: DAR Takes Stand on Criminality of SHO> By cleathinker on 1/22/2007 8:30 AM
Not to be pessimistic, but given that many of the problem fails are x-clearing, or long tickets sold without shares, how wil the repeal of the grandfather clause address these fails.

Given the thrashing that many of the Reg SHO mainstays like OSTK, NFI etc, have taken, I don't think the shorts are shaking in their boots if they need to cover...hate to be a pessimist but the damage has been done...

CT
Re: DAR Takes Stand on Criminality of SHO> By briguy331 on 1/22/2007 8:31 AM
Bud, could you please comment on this article? And what exactly is going on here?

http://www.allamericanpatriots.com/m-news+article+storyid-17785.html

Thanks in advance....
Re: DAR Takes Stand on Criminality of SHO> By narco on 1/22/2007 8:33 AM
Please don't censor this post as it isn't off topic. These issues are connected.

You can't understand share counterfeiting without understanding why there is a picture of NYSE Richard Grasso hugging a Columbian rebel.

http://www.narconews.com/narcodollars1.html

Or why John Kerry killed investigation of Iran Contra in the 80's? Why would he do that? Or why Barry Seal had both Clinton and Bush phone numbers in his phone book.

http://en.wikipedia.org/wiki/Barry_Seal

Rekeesh is a front for Adnan (and Israel / Saudi Arabia). The world they work in is about creating war to sell arms and drug dependency to sell drugs, laundering it through the stock market, then bribing / blackmailing election candidates. Rakeesh, Adnan, Milken, Bush, Clinton are all connected. They are connected to collapsing MJK Clearing on Sept. 11th and shorting the airlines on the 10th through Elgindy.

The story of BCCI, Danny Cassolaro, Gary Webb, etc. hasn't been told yet. Share counterfeiting is NOT like 1929. This is different and way more criminal in nature. It's tied into the criminals behind 911 which has created windfall profits for their arms supply businesses as our children die in Iraq.

http://www.nriinternet.com/NRI_Fraud/ASIA/Thailand/Rakesh_Saxena/1_crooked.htm

If you don't understand that BOTH the Democrats and Republicans are part of the system that supports the CRIMINAL SEC APPROVED counterfeiting, then you won't understand what changes need to happen.

We can't be CNN's common headline,"America divided" - we need to unite as republicans and democrats to fight this crime. The thieves want us to be divided, but on counterfeiting, I think most middle class are clearly against!

1.DEMOCRATS

http://www.whatreallyhappened.com/RANCHO/POLITICS/TINY_smug_hill.jpg

The above photo was taken in front of the White House Christmas tree with Hillary and Clinton campaign donor Jorge Cabreras. Jorge is a convicted drug smuggler and friend of Fidel Castro. According to the New York Times, April 4, 1997, Jorge was solicited for his donation by a Democratic operative in the lobby of a hotel in Havana! The $20,000 check to the Clinton campaign came from an account linked to cocaine money. At the time the above photo was taken, Jorge had two felony convictions, but the Secret Service cleared him to enter the White House anyway.
Remember what I said about America needing a President who places America first, second, and third.

2. REPUBLICANS

Why Does George W. Bush Fly in Drug Smuggler Barry Seal's Airplane?

by
Daniel Hopsicker and Michael C. Ruppert

It has all the makings of a major box office thriller: Texas Governor and Republican Presidential contender George W. Bush and his brother Jeb, allegedly caught on videotape in 1985 picking up kilos of cocaine at a Florida airport in a DEA sting set up by Barry SealÉ

An ensuing murderous cover-up featuring Seal's public assassination less than a year later by a hit teamÉthe members of which, when caught, reveal to their attorneys during trial that their actions were being directed by then, National Security Council (NSC) staffer - Lt. Colonel Oliver NorthÉ

And a private turboprop King Air 200 supposedly caught on tape in the sting with FAA ownership records leading directly to the CIA and some of the perpetrators of the most notorious (and never punished) major financial frauds of the '80s. ÉGreek shippers paying bribes to obtain loans from American companies that would never be repaid.ÉAn American executive snatching the charred remains of a $10,000 payoff check from an ashtray in an Athens restaurantÉSwiss police finding bank accounts used for kickbacks and bribesÉ

Add to this mix the now irrefutable proof, some of it from the CIA itself, that then Vice President George H.W. Bush was a decision maker in illegal Contra support operations connected to the "unusual" acquisition of aircraft and that his staff participated in key financial, operational and political decisionsÉ

All these events lead inexorably to one unanswered question: How did this one plane go from being controlled by Barry Seal, the biggest drug smuggler in American history, to becoming, according to state officials, a favored airplane of Texas Governor George W. Bush?

3. MENA

Bush and Clinton allowed the CIA to smuggle cocaine into Mena Arkansas and pay for it by smuggling arms out. If you count Reagan's time in office, Clinton / Bush have been in charge for a long time.

http://www.whatreallyhappened.com/RANCHO/POLITICS/MENA/mena.html
Re: DAR Takes Stand on Criminality of SHO> By ckza on 1/22/2007 1:17 PM
I don't enjoy being cynical or rude but I am not sure that the picture of Grasso is Grasso. Maybe the details in the article can be proven with more thorough research, I don't know.

Grasso is a very small man including his hands. The Columbian he is hugging may be pint size even whilst comparing him to Grasso; however, Grasso's hands are gigantic relative to the real guy.

Additionally, the profile of him could lead one to be skeptical as well. imo

Re: DAR Takes Stand on Criminality of SHO> By Jerry Davis on 1/24/2007 6:55 AM
It just dawned on me...the “know-how” and machinations behind the naked short selling scam originated with the Federal Reserve System. Think about it, shares, like bank deposits, are an asset pool which can and are being used (through massive leverage) to generate fee income for banks, and the like, at the expense of unsuspecting schmucks (investors or depositors). The powers that be will never admit to any wrongdoing because they view the current market system as the equivalent of the reserve banking system. Without a sufficient and knowledgeable understanding of the inner workings of the completely corrupt and unconstitutional “reserve” banking system and the incestuous relationships behind it, the present system of institutional theft on Wall Street will remain shrouded in obstruction and secrecy. Leverage on a grand scale in every financial arena is the order of the day.
Re: DAR Takes Stand on Criminality of SHO> By bburrell on 1/24/2007 7:01 AM
Narco and Jerry,

You are now figuring out something I have been tracing for over 15 years in one case, and over 30 years in another.

Narco, read Compromised by Terry Reed, Seals Back Up Pilot, Circle of Death, Damage Control, and Reckless Disregard.

Jerry, Read Eustace Mullen's The World Order, out of print, and now over 30 years old.

NOBODY launder trillions of dollars without the central bank backbones not seeing the trails. The actuarial problem is really a pattern recognition problem of a giant nonn-linear matrix. Watch Numb3ers on TV for some hints, the show is built on real math science.

Best, Bud.
Re: DAR Takes Stand on Criminality of SHO> By bbhindyou on 1/24/2007 1:03 PM
Bud the people behind this convinced the then president that the finincial ruin of russia could only be brought about by this method and as soon as the russian threat was abolished the money would go back to america and the people and that the methods used to bring down the russian economy would be criminalized again.
Once they got the dtcc running and the money in their hands all deals were off and they have been in control ever since.
The one with the gold makes the rules.
The dtcc was never anything more than a complete break with the rules of americas finincial markets, the rules designed to protect investors.
The sec became complicit in the robbing of all shareholders the first time a stock borrow was allowed that exceded the actual number of shares available.
Supply and demand no longer controlled the market and the crime spree had begun.
The american people did not win the cold war.
Who did?
You tell me.
Re: DAR Takes Stand on Criminality of SHO> By Sean on 1/26/2007 3:38 AM

In the limelight: A form of short selling is controversial



By RANA ROSEN
Patriot Ledger Washington Bureau

A tense debate continues among companies nationwide over whether the government should crack down on a stock market trading practice known as naked short selling.

The practice involves selling shares of stock to make a profit on their possible loss, without actually having the shares ready for delivery.

At least two Boston-based companies, First Marblehead and Satcon Technology Corp., have been put in the spotlight as a consequence of the Securities and Exchange Commission’s regulation of abusive naked shorting. The SEC is considering additional rules to curb this trading technique.

Market overseers keep tabs on the trading of specific company stocks and put out daily reports on failed stock deliveries.

Short selling itself is not illegal; it’s just another way to make money on the stock market. For example, a short-seller guessing that a stock price will go down could borrow stock from a broker, and then sell it to another buyer for $10. If the stock falls by $2 that day, the short-seller can buy the borrowed stock at $8 and it is delivered back to the original broker. The short-seller, in this case, just made a $2 profit, minus any trading expenses.

But traders must borrow a stock - or determine that it can be borrowed - before they sell it short. Some professional investors take advantage of trading rule loopholes to sell shares without even making an attempt to borrow the stock.

A naked short-seller becomes a criminal if there is the intention to manipulate the stock market by, for example, selling stocks that are never delivered in order to force down a company’s stock price.

Patrick Byrne, CEO of Overstock.com, said this manipulation can destroy companies. He has been trying to draw public attention to this issue since it affected his company, a Salt Lake City-based online retailer.

‘‘No one can go into a hospital’s pneumonia ward, smother whoever they want to, take their money in the nightstand, then leave saying, ‘Oh they were going to die anyway,’’’ Byrne said.

In January 2005, the Securities and Exchange Commission put in place Regulation SHO, which among other things mandates that markets report on companies that are unwittingly affected by naked short selling. The rule also requires large-volume Wall Street traders to try to put a stop to it, requiring them to buy and deliver the shares if the stock wasn’t delivered by the short-seller within 13 days. .

The SEC is considering whether to expand Regulation SHO, which already covers other potential abuses related to short selling.

Byrne of Overstock.com said abusive naked shorting happens more than some industry insiders want to acknowledge.

‘‘I don’t know an entrepreneur that doesn’t know about this,’’ he said. ‘‘They all understand that the game is rigged.’’

Satcon Technology Corp., a South Boston electrical products company, saw its stock price drop from a high in May of about $3 to about $1 today after a pattern of naked short selling.

First Marblehead, an outsourcing firm for private-education lenders, appeared on the Regulation SHO list and was named by Forbes magazine last summer as a target for short-sellers. Forbes wrote that short-sellers knocked down the financial company’s stock from $55 in January 2005 to less than $21 in October. The stock is now trading at around $53 a share.

Henry Hu, a professor of corporate law at the University of Texas Law School, said company executives often complain about legal short selling when their stock prices decrease for any of a number of reasons.

‘‘People like short-sellers provide a valuable social function,’’ Hu said. ‘‘They help set an appropriate price for the shares (because) there is a bias in favor of pushing stocks up.’’

He said there are already adequate laws that prohibit stock price manipulation.

Said SEC Commissioner Roel Campos, ‘‘Short sale regulation has been, is and will continue to be an issue where agreement is difficult to find. All experts, including our own economists, are convinced that short selling provides the marketplace with liquidity and pricing efficiency. However, it must be realized that shorting can be misused for manipulative conduct, as with any trading strategy.’’

Hundreds of individuals and organizations -- recently gave the SEC their opinions on its recent proposal to broaden the reach of Regulation SHO.

The Boston Options Exchange filed a letter opposing one of the changes, saying that ‘‘it is important to remember that short selling serves a legitimate purpose and is not inherently abusive.’’

But an anonymous professional trader from Boston urged the SEC to do more, writing: ‘‘We have rules about short selling and borrowing shares prior to shorting, and we have a system to detect those who are clearly not following these rules, yet the consequences for breaking these rules are nil.’’

Copyright 2007 The Patriot Ledger
Transmitted Wednesday, January 24, 2007


http://ledger.southofboston.com/articles/2007/01/24/business/biz03.txt
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