SEC re-opens comment period on SHO..Unbelievable !

[imSINGLEruRICH]

Unbelievable.....Totally unbelievable !!.!! WTH were they doing all this time?? Nevermind I know.... covering their d*mn criminal a$$e$ !! & will continue to do so for another 30 days !!Time to remind them (once again) that they are guilty of aiding & abetting in the criminal act of Counterfeiting !!
SEND YOUR COMMENTS ASAP !!


portrush
Administrator

SEC re-opens comment period on SHO
www.sec.gov/rules/proposed/2007/34-55520.pdf

SECURITIES AND EXCHANGE COMMISSION 17 CFR PART 242 [Release No. 34-55520; File No. S7-12-06] RIN 3235-AJ57 Amendments to Regulation SHO AGENCY: Securities and Exchange Commission. ACTION: Notice of re-opening of comment period. SUMMARY: The Securities and Exchange Commission is re-opening the comment period on the “Amendments to Regulation SHO” it proposed in Securities Exchange Act Release No. 54154 (July 14, 2006), 71 FR 41710 (July 21, 2006) (the “Proposal”). In view of the continuing public interest in the Proposal, as well as to reflect concerns raised by commenters, we believe that it is appropriate to re-open the comment period before we take action on the Proposal. DATES: Comments should be received on or before [insert date 30 days after publication in the Federal Register]. ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments:
• Use the Commission’s Internet comment form (http://www.sec.gov/rules/proposed.shtml); or

• Send an e-mail to [e-mail]. Please include File Number S7-12-06 on the subject line; or

• Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

Paper Comments:
• Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090.

All submissions should refer to File Number S7-12-06. This file number should be included on the subject line if e-mail is used. To help us process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/rules/proposed.shtml). Comments are also available for public inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE, Washington, DC 20549-1090. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: James A. Brigagliano, Associate Director, Josephine J. Tao, Branch Chief, Joan M. Collopy, Special Counsel, Lillian S. Hagen, Special Counsel, Elizabeth A. Sandoe, Special Counsel, Victoria L. Crane, Special Counsel, Office of Trading Practices and Processing, Division of Market Regulation, at [phone], at the Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. SUPPLEMENTARY INFORMATION: The Commission is requesting additional public comment on proposed amendments to Rule 203 of Regulation SHO [17 CFR 242.200 and 242.203] under the Exchange Act. In Release No. 54154 (July 14, 2006), 71 FR 41710 (July 21, 2006), the Commission proposed amendments to Regulation SHO under the Securities Exchange Act of 1934 (the “Exchange Act”) intended to further
- 2 -
reduce the number of persistent fails to deliver in certain equity securities by eliminating the grandfather provision and narrowing the options market maker exception.1 The Commission is re-opening the comment period, which ended on September 19, 2006, to provide additional information with respect to the Proposal to the public. Commenters have urged the Commission to provide additional data related to the Proposal before it determines whether additional rulemaking is necessary.2 In formulating the Proposal, the Commission relied primarily on data collected by the National Association of Securities Dealers, Inc. (“NASD”). NASD collected this data through confidential queries and examinations of member firms. As a result, the Commission did not provide the data underlying the examinations and discussions because it was concerned that the data contained confidential, company-specific examination findings and discussions. However, in response to commenters’ requests for data, the NASD submitted a comment letter on March 12, 2007 that provides the NASD’s findings in summary form with confidential, company-specific information removed.3 Accordingly, the Commission is re-opening the comment period to highlight the fact that additional data has become available and to provide the public with an 1 The Commission also proposed amendments to update the market decline limitation referenced in Regulation SHO. 2 See e.g., Comments of Keith F. Higgins, Chair, Committee on Federal Regulation of Securities, American Bar Association (September 27, 2006) (stating that “without the benefit of knowing the information relied upon by the Commission in analyzing the cause or causes of the current fails to deliver and the likelihood that the proposed changes will reduce those fails to deliver, commenters are deprived of the opportunity to opine on the significance of the examination results or the Commission’s interpretation of such information”); comments of Alan Schwartz, Novato, California (September 19, 2006) (requesting “strong empirical data for the existence of problems. . .”); comments of Margaret Wiermanski, Chief Operations Officer, and Matthew Abraham, Compliance Officer, CTC LLC (September 28, 2006) (stating, “What is not clear in the current Proposing Amendments is any research that would evidence the anticipated levels of additional improvements in eliminating fails to deliver.”) 3 See File No. S7-12-06, Comments of the National Association of Securities Dealers, Inc. (March 12, 2007).
- 3 -
opportunity to comment on this data. In addition, in re-opening the comment period, the Commission also directs the public’s attention to additional data that may be of interest to commenters seeking information on the reasons why fails may be persisting since the adoption of Regulation SHO:4o Prior to the Commission’s Proposal, the New York Stock Exchange LLC (the “NYSE”) informed the Commission that it conducted a review of five securities with substantial aged fail positions from July 1, 2005 through September 23, 2005. The NYSE found that the aged fail positions in these five securities were attributable to one broker-dealer. This broker-dealer informed the NYSE that the fail positions were not being closed out because it was relying on the options market maker exception. o Prior to the Commission’s Proposal, the Commission’s Office of Compliance and Inspections (“OCIE”) conducted some examinations for Regulation SHO compliance and found that some broker-dealers were still carrying a significant amount of fails to deliver in securities that they were not closing out because they were relying on the grandfather provision. One broker-dealer indicated that it had not closed out several persistent fails in threshold securities because it was relying on the options market maker exception. 4 See Securities Exchange Act Release No. 50103 (July 28, 2004), 69 FR 48008 (August 6, 2004).
- 4 -
Therefore, the Commission is re-opening the comment period for Exchange Act Release No. 54154 from the date of this release through [insert date 30 days after publication in the Federal Register]. By the Commission. Nancy M. Morris Secretary Dated: March 26, 2007

[imSINGLEruRICH]

canned response within seconds of sending !!

Thank you for submitting a comment to the U.S. Securities and Exchange Commission. This auto-reply is your notification that we received your comment letter. The SEC will post all comments on the SEC's Internet Web site (http://www.sec.gov/). Comments will also be available for public inspection and copying in the SEC's Public Reference Room, 100 F Street, NE, Washington, DC 20549. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. We generally post comments within 2 to 3 business days after we receive them electronically. Also, please review our privacy policy at www.sec.gov/privacy.htm.

If you are an investor, check out the "Investor Information" section of our website, at www.sec.gov/investor.shtml, to find helpful information and tools. If you have a securities-related question, please visit our website at www.sec.gov/answers.shtml to find fast answers to your questions and solutions to common investment problems. If you are a securities professional needing assistance on technical matters, please check the "SEC Divisions" and "Information For" pages on the top right of our website, www.sec.gov.

We appreciate your taking the time to communicate your thoughts on our proposed rules.

Sincerely,

Lori Schock
Acting Director
Office of Investor Education and Assistance
U.S. Securities and Exchange Commission

[imSINGLEruRICH]

Re: SEC reopening comments on SHO

-------------
Remember How The SEC Stalled Meaningful Action for Years on FTDs? More Doing Nothing Ahead...
Posted by: bobo

3/26/2007 1:30 PM
It would be very funny if not completely true.

Those who lost fortunes over the last 7 months, while the SEC finally grudgingly acknowledged that Reg SHO wasn't working, will be glad to hear that the desperately and anxiously awaited action we've all been waiting for has been......

Delayed yet again.

Yes, instead of doing simple things like admitting that the Grandfather clause, which was unlawfully slipped into Reg SHO, and in violation of the SEC's own rules, never received a comment period (thus making it an illegitimately issued hall pass for those refusing to deliver what they sold, often for years)...and doing away with it, what instead has the commission done?

Re-opened the comment period for SHO.

www.sec.gov/rules/proposed/2007/34-55520.pdf

Huh? WTF? Why? We already know that there is no basis in the SEC's charter to forgive persistent delivery failures. There is no basis in its mandate of investor protection to allow exemptions for market makers to create massive FTDs - none of which has the most remote basis in bona-fide market making. Failing for weeks, months or years is not bona-fide market making. Never was, and nobody with a working brain would buy it for a second. But apparently the SEC does, hook line and sinker.

We know that Reg SHO hides information rather than encouraging transparency, and badly damages investors and companies, for whom their stock is a fiction Wall Street bad guys have simply refused to deliver - after being paid for the product.

But now instead of an end to the grandfather clause, and a tightening, if not complete elimination, of the egregious options market maker exemption (wherein the options MMs are allowed to create naked short shares in literally un-checked amounts, in order for them to enjoy cost-free hedging in the derivatives market at the direct expense of equity securities investors) we get more stonewalling and requests for comments.

Where is it so hard to see that by allowing speculators in a different market - options - to create stock at will in the stock market (for the sole reason of providing free hedging for the options speculators), materially damaging stock investors as well as the companies affected, that it is BAD for everyone EXCEPT the options speculators? Where is the SEC allowed to favor the interests of options speculators, over the interests of investor protection? Point me to the code section. The enabling language that says, "If you are a company deriving financial benefit by speculating in options, you can hedge your for-profit trades by fabricating non-existent shares at no cost to you - and do so as early and often as you like. Screw investors buying those phantom shares, and those whose stock plummets due to the massive, unauthorized volume you just printed - it's all good. Knock yourself out."

Unbelievable. Really. I've never in my life even hinted at this level of gross and callous disregard for the rule of law as the norm, and yet for year after year after year, investor dollars are taken, nothing is delivered, and the best the SEC can do is "extend" the comment period. Because 8 years ago, naked short selling as we saw in the crash of 1929 was so, er, unexpected and misunderstood - you know, the idea that you might have to deliver the stock you sold, instead of just refusing to do so, and giving the investor the middle finger, was such a quaint notion that the SEC was unable to figure out it could damage companies and investors. That was a tough one. 8 years later, and they still need comments. How about this one: Settle the trades, or go to jail. Did I leave anything out of the mix? Some nuance omitted?

I suppose all those rapists, whose easy pickings every weekend night looked to be in jeopardy from the passage of laws that make it against the law to take women against their will, can rest easy, while the motivations of the rapists are discussed as more info becomes available. "I just get so mad," "She was asking for it," "She was wearing that dress - how clear did it have to be?"

Yet more opportunity to study the motivations of the violent criminal predators is now at hand, while the raping continues unabated.

Folks, I am absolutely dumbfounded.

"I sold, and continue to sell, tens of millions of shares that don't exist, uh, you know, because of the bona-fide market making I'm engaged in that requires the creation of tens of millions of non-existent shares..."

"Well, you grandfathered them all, so why would I go pay money to deliver the shares, when you gave me the free pass for years?"

"When I was selling with unbridled levels of aggression, while my hedge fund clients were telling me to put the company out of business, and bury them, I thought that was bona-fide market making, not criminal stock manipulation. Oops. I heard it was a fun and lucrative game. Cramer said everyone should do it. Sorry. Really. My bad."

"We figured that since you violated the law and enacted grandfathering, that was our go-ahead to use it to keep violating the law and ripping off the last remaining dollars in the US retirement savings system. How about another 6 months to comment on it while we pick the bones?"

"Gotta go create another million shares of OSTK while you have the rubes write letters. Too GD funny. Really very amusing. Ha ha ha ha."

And so on.
Bob O'Brien
----------------------------
From the Blog... www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/592/Default.aspx