From: Mark Murphy [mmurphy@tcrmail.com]
Sent: Tuesday, June 29, 2004 1:28 PM
To: rule-comments@sec.gov
Subject: File No. S7-10-04


To:	U.S. Securities and Exchange Commission

From:	Mark M. Murphy, Senior Vice President, Cornerstone Realty Income 
Trust, Inc.

RE:	File No. S7-10-04

As a registered voter in the Commonwealth of Virginia, and as an officer of a 
company listed on the New York Stock Exchange, I am writing in regard to an SEC 
proposal which could substantially weaken an important element of investor 
protection. 
	
The trade-through or "best price" rule provides investors assurances they will 
receive the best price when buying and selling shares of NYSE-listed companies. 
This principle has served our markets well for several decades now. It ensures 
that orders, whether large or small, compete on the same basis --- price. The 
vibrancy of our securities markets derives largely from the liquidity that price 
competition creates. To the degree that investors are willing to offer better 
prices their orders should not be ignored. 

The SEC has proposed allowing institutions to "opt out" of this rule. This means 
those institutions would have the right to execute at something other than the 
best price on behalf of their ultimate investors. Professional traders would be 
encouraged to internalize customer order flow. Taking liquidity out of the 
market will raise trading costs, widen quoted spreads, and increase volatility. 
Providing institutions an "opt out" exception creates a regulatory endorsement 
for the position that price does not matter even when speed and anonymity are 
relatively equal between markets. It is a bad message to send, and the least 
sophisticated investors, including those investing in mutual funds, are at 
greatest risk. 

Further, when liquidity is fragmented across multiple trading venues the cost of 
raising capital increases impacting issuers and investors alike. This is a 
matter of great significance for the American economy broadly as the cost of 
capital directly impacts our ability to invest in jobs, R&D, expansion, 
acquisitions, etc. 

I ask that members of the subcommittee work to keep the best price provisions of 
the trade-through rule intact. 

Sincerely,


/s/Mark M. Murphy

Mark M. Murphy
Senior Vice President - Corporate Services
Cornerstone Realty Income Trust, Inc. (NYSE: TCR)


Mark M. Murphy
Senior Vice President-Corporate Services
Cornerstone Realty Income Trust, Inc.
306 East Main Street   Richmond, VA 23219
PH 804-643-1761  FAX 804-782-9302
email: mmurphy@tcrmail.com