Subject: File No. S7-5-99 Proposed changes within Rule 15c2-11
Author:  <SteveKolor@aol.com> 
Date:    5/3/99 12:18 PM
     
     
Security and Exchange Commission
ATTENTION:
     
Secretary: Jonathan Katz
Commissioners: Arthur Levittt, Isaac Hunt Jr., Norman Johnson, Paul Carey, 
Laura Unger
     
        It has been brought to my attention that there are suggested rule 
changes within the SEC regarding the requirements (Scope of Rule 15c2-11) of 
the marketmakers in OTC BB stocks.  Our Company (Kolorfusion International, 
Inc. KOLR), like many others, need the OTC Bulletin Board to provide a market 
for our stock and our shareholders.  A "ground zero" entrepreneurial 
formation of  a global U.S. company, generally requires a platform for 
capital formation at which sometime the public can become involved as an 
investor.  The marketmakers at the aformentioned level are key to this 
initial public market and its liquidity.  The more constraints, requirements, 
reporting, etc. required of the marketmakers makes the OTC:BB less and less 
attractive to them; thereby eventually "drying up" a significant source of 
capital formation for the up and coming companies.  Let's not place more and 
more burdens and added costs upon the marketmakers; wherein, the costs are 
such that  it causes them to leave this important "entrepreneurial driven" 
U.S. capital formation market. 
     
                                 Sincerely,
     
     
                                 Steve Nagel
                                 President-Kolorfusion International, Inc