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To: bob who wrote (15065)	9/22/2000 12:46:47 PM
From: Jon Tara	Respond to of 18366

Bob, I am referring to naked shorting as well. If a MM has a customer order to buy, and doesn't have the shares in inventory, it is perfectly proper for him to short the shares to his customer naked. This adds liquidity to the market, and decreases volatility. If, on the other hand, the MM shorts naked for his own speculation, this is illegal. It is not bona-fide market-making activity. To the extent that MMs might try to masquerade such activity for bona-fide market-making activity, that is already illegal, and if it is wide-spread, I would agree that there should be attention focused on it, and enforcement action taken.