Date:    4/6/99  1:22 PM

Subject: File No.S7-8-99

Attn.: Mr. Jonathan Katz
        Secretary/SEC
        450 Fifth St. NW
        Washington, DC 20549-0609
     
Mr. Katz, this note is in reply to NASD-R's Lyn Kelly who is Director of 
Year 2000 Program requests for comments on proposed Y2K rules.  Let me 
say in my opinion, that compared to other industries and other countries 
I think the SEC & NASD are far ahead in their concern whether firms will 
be Y2K compliant.
     
I recently updated and tested the Windows 95 BIOS on the firm, Mid 
Florida Equities, Inc. computer system to make the system fully Y2K 
compliant and think its a necessary thing for firms to be Y2K 
compliant..
     
While doing some Firm Element Continuing Education recently at a 
Computer Security, Data Encryption, and E-Commerce Seminar in Anguilla, 
British West Indies, attended by people from Bell Labs, Microsoft, US 
Naval Intelligence, CIA, etc. one of the speakers, a noted Computer Data 
Encryption expert from an Israeli university mentioned something more 
ominous and potentially more likely than Y2K which I have never seen 
addressed by either the SEC or NASD in any notices, that is the threat 
of INFORMATION WARFARE between now and the year 2010.
     
The speaker mentioned and many experts at the conference felt that 
without firing a shot if an enemy of our country wanted to disrupt or 
country severely all it would take would be to jam our computer network 
system, such as NASD-Turnbull, CT , Rockville, MD or CNBC , take system 
out for just couple days would serve to undermine confidence in our 
National Security Markets which doesn't seem a good scenario.
     
The speaker seemed to think this event especially  could happen around 
end of this year or up to the year 2001 as folks like Saddem Hussein, or 
Libya's Col Kadafi don't like our country and supposedly are working on 
all types of diabolical things against their enemies.
     
I was wondering what steps the SEC or NASD has for Broker/Dealers to do 
in case of this scenario and have never seen it mentioned in Notice to 
Members or anywhere else.  I realize it is a controversial subject that 
folks don't like to think about or talk about but what if it happens.
     
Noah didn't wait for trouble before he built the arc if you know what I 
mean if he did it would have been to late.  I am just a tiny firm and 
keep records still with paper & pen besides having computer 
records/printouts but you have been around the SEC for awhile.
     
Your name appears on my SEC Registered Investment Advisor certificate 
back in 1992 so feel you might know the right people to get in touch 
with over this issue.  I can furnish the names of the computer 
scientists and engineers at the conference if you or someone else from 
the SEC cares to contact them as I am not that technically oriented to 
go on and on about it, I was just a student in the crowd and had never 
considered this scenario.
     
Thank you in advance for your time.
     
Best Regards,
     
     
J. Patrick Calby