Subject: File S7-3-98
Date:    4/23/98 11:57 AM
     
     
I am adamantly AGAINST the above proposed rules.
     
These rules will cause market makers to drop market support for many small 
companies which in effect will destroy their ability for raising financing 
and result in their going out of business.  It will also result in a 
substantial reduction in low priced stocks (less than $1) being available 
on the OTC quote system.  How does this help those who want to invest in 
low priced stocks?? 
     
I invest regularly in low priced stocks.  Quite frankly, the SEC's attempts 
at trying to proect me have made investing in emerging growth companies very 
burdensome.  For example,  I can't  buy a stock without signing a document 
that the purchase was unsolicited. While this paper is being pushed, the 
price of the stock often goes up and I lose out or have to pay more. How 
have I been protected?  Why do I have to sign an unsolicitation document for 
a low priced stock when I don't have to sign it when I get boiler room calls 
from big name Wall Street brokerages peddling their favorite stock.  Since 
when is 'big is inherently good and small is inherently bad'.  I bought 
Grand Union bonds and they've since defaulted on them and their stock price 
dropped 50%.  Where is the security because they are a big company?
     
IF YOU WANT TO DO SOMETHING TO REALLY PROTECT INVESTORS, COMPUTERIZE THE 
TRADING SYSTEM LIKE THE VANCOUVER , TORONTO AND ALBERTA EXCHANGES.  There, 
I can enter a bid or ask and that bid or ask shows up in the computerized 
quotation system for the stock. I can also get market depth by bid and ask.
The system in the States is archaic to say the least and allows market
makers to manipulate the prices and the bid/ask spreads.  In Canada, what 
you see on the screen is an actual bid or ask from a real buyer/seller and 
not quotations from some market maker.  And, why can't the individual 
investor get market depth by size on US stocks?   Why is info on Canadian 
stocks  readily available to the individual investor and here in the States 
the same info is treated as top secret????
     
The best way to solve the problem is to computerze the trading system. This 
would cut out the bid/ask spread manipulation by the market makers -- 
because there are no market makers -- the bids and asks represent actual 
buy/seller offers from real buyers and sellers.
     
Foster Chandler     
     
In