From: Frank [frankc@cox.net]
Sent: Monday, May 17, 2004 3:18 PM
To: Rule-comments@sec.gov
Subject: NMS (s7-10-04)

Thank you for extending the public comment period.  I am aware of your 
responsibilities and of the consequences brought about by change.

In this writing I will set aside any personal feelings and speak for Public 
Policy Good. Although all aspects of the proposal bring substantial change I 
will confine my remarks to the issue of best price. 

My concerns are the fragmentation of markets, loss of price discovery, market 
exploitation and the end of our nation's ability to compete globally. 

1. Price discovery

The price discovery model comprises, Two way auction,  Limit orders, 
Specialists, Agent brokers. In normal times of market activity this system works 
very quickly and develops the best price 93% of the time. 

In times of order imbalances, news or  other disruptive market occurrences, it 
provides price discovery which allows the electronic markets to exist.

2. The issue of fast vs. slow. 

Both can have stock trade ahead. In a fast market if 10 orders to buy or sell 
are entered simultaneously and the size of the bid or offer is only capable of 
filling 2 orders then 8 will have stock trade ahead. This takes place in a slow 
market as well. That dispels the certainty of an execution in a fast market.

I would expect that removal of the trade through rule or some of the 
modifications as proposed would lead to your concerns of NOT CONTEMPLATED 
results. All aspects, even the markets for derivatives will be affected. 

When it comes to a decision on market structure I would be an advocate of the go 
slow approach. The auction markets need time to evolve, investors need to be 
protected  and competition between all markets will be fostered. Your interests 
should be long term goals not short term fixes.

                     Thank you

                                 Frank