From: Bill Mazzacca []
Sent: Monday, April 26, 2004 3:16 PM
Subject: Proposed 4PM Hard Close Rules (S7-27-03)

To Whom It May Concern:

Based on certain articles which have appeared in recent financial publications, I wanted to take a moment to express my views on the "4PM hard close rule".

As a 401K investor, I am very vigilant in tracking my fund investments. As markets appear to change long term trend, I tend to adjust my investment strategy to best capitalize on those market moves. My strategy could best be termed, "Buy and Perform" versus a pure "Buy and Hold".

This, in its purest form, is not market timing however, it is my attempt to best capitalize on every investment dollar that I have. Certainly, this is the point of investing in the markets.

In line with my objectives, I typically wait till the last hour of the trading day before finalizing a decision to move into or out of a fund. This criteria is based on the observation that, often, the markets will change direction toward the end of the day and I want to avoid making a "knee-jerk" decision.

My account is housed at Fidelity and all of my transactions are completed through their web-site. As part of that process, I receive a confirmation of the intended transaction along with a transaction number, time the order was received, and other pertinent information.

It would seem that all such transactions - whether initiated via internet, automated phone or, person-to-person phone order - must be entered into an electronic entry system. This system should - or could - include a timestamp function.

The timestamp function could be encoded as part of a larger transaction number which could become part of the permanent company record. Further, routine or spot audits could be used to review these transactions to insure that there is no violation of the 4PM rules. Such violations would be subjected to fines and other sanctions.

In closing, I would like to share one last personal observation: Penalizing all for the actions of a relative few is a kindergarten punishment best left in the school hallways. As a small investor, I am not capable of the same manipulation that fund companies are. As a result, I should not be subjected to the same level of punishment.

401K funds were heralded as a vehicle for the small investor to capitalize on the markets and create a "more level playing field." Creating a 4PM hard close rule would unlevel this field because market makers would have the upper hand in order placement over smaller investors.

Thanks in advance for your attention in this matter.

Warmest regards,

Bill Mazzacca

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