April 13, 1998 Mr. Jonathan Katz Secretary Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549 RE: SR-NASD-98-21 Dear Mr. Katz: I am a private investor and have been greatly effected by the Actual Size Rule. The ability to trade has become increasingly difficult - the Market Makers are backing away from their quotes, they don't fill you for what they are showing, you'll preference the MM and they won't answer you. They use INCA or ECNs to hold up a stock while beneath the ECN Market Makers are leaving and not honoring the quotes they have been displaying. It makes it very hard to get out of or into a stock. The ability for a trader to make a profit has been severely restricted while the Market Makers seem to have all of the benefits. While trying to get out of or into a stock it has become increasing impossible to manage your other position. The actual spreads have severely widened even though they appear to be smaller because MM or ECN may display smaller spreads, but they won't hit or they leave, they will disregard your floating order and before you know it you are 3/8 or 1/2 out of the money. Any study that says that the Actual Size Rule has not effected the individual investor is wrong. Talk to any day trader and they will agree that spreads have severely widened that the MM will not honor 1000 share quotes and that they will back away. If you want proof, I will be happy to send you my trade sheets that show multiple fills at different levels. This rule has severely limited trader's livelihood especially with the amount of capital that individual traders risk. Although the MM do have risk, it appears to me that the individual investors risk has severely increased because of their inability to get in and out of stocks. It should at least go back to where each MM has to go back to the 1000 shares or tier limit quote. ECNs should be SOESable. Michael Zatorski 2800 Barton's Bluff Ln. #407 Austin, Texas 78746