December 21, 2004
To: Jonathan G. Katz
I am taking this opportunity to comment on rule filing SR-CBOE-2004-77 that was published in the Federal Register on Dec. 6,2004.
Although I can completely understand your reasoning for monitoring orders for the protection of customers, the methods being introduced to comply with this rule filing will be to the detriment of most customers who utilize the broad based index complex to conduct business.I feel strongly that there has to be a more customer friendly approach to achieving your objective other than the one being developed at this time. The customer is most at risk with this current approach.Those who have been involved with the trading of index products know that the speed of executing customer orders is of the highest priority.The concept being developed will definitely delay the time of execution for orders that represent the largest customers in broad based index products.
I invite and encourage you or anybody from the commission to sit down with myself and any other individuals who work with these products and with the users of these products to fully understand the ramifications of implementing the system currently being developed.