From: Andrew W. Lo [alo@MIT.EDU]
Sent: Tuesday, September 09, 2003 10:51 PM
To: rule-comments@sec.gov
Subject: SR-BSE-2002-15
Mr. Jonathan G. Katz
Secretary
Securities and Exchange Commission
450 5th St., NW
Washington, DC 20549


Dear Mr. Katz,

I am writing to follow up on my email letter of February 15, 2003 in support 
of the Boston Stock Exchange's proposal to establish a new electronic market 
for equity options called the Boston Options Exchange (BOX).  We have now had 
an extensive comment period in which all of the relevant issues have been aired, 
and I believe there is now overwhelming support for the establishment of this 
new exchange from many different perspectives.  Although there will always 
exist critics and skeptics that oppose any innovation, the continuing health 
and growth of the financial industry depends on our ability to evolve and adapt 
to changes in market conditions and needs.  In particular, it is clear that BOX 
will be a great benefit to the general investing public by spurring competition 
in the options market, and pby roviding investors with greater liquidity and 
flexibility for allowing supply to meet demand.  One of the most fundamental 
principles on which the great success of US capital markets is based is that 
the ultimate arbiter for any new business venture ought to be a market test, 
not regulatory fiat, hence I strongly urge the Commission to support the BOX 
initiative and approve the proposed rules as filed.

Thank you for your time and consideration in reviewing this comment letter.

Sincerely,
Andrew W. Lo

Harris & Harris Group Professor of Finance
Director, MIT Laboratory for Financial Engineering
MIT Sloan School of Management
50 Memorial Drive, E52-432
Cambridge, MA 02142

Chief Scientific Officer
AlphaSimplex Group, LLC
One Cambridge Center
Cambridge, MA 02142

Governor
Boston Stock Exchange
100 Franklin Street
Boston, MA  02110