Date:    02/03/2000  11:04 PM


Subject: to File Number SR-NYSE-99-47

Concerning NYSE Rule 431 that would raise the minimum balance of a traders 
account participating in trades of NYSE listed stocks.
     
I am somewhat surprised at this move by the sec. The only thing I see this 
accomplishing is to shut out small investors such as myself and give more 
of my profits to large brokerage firms who would have to execute my orders 
for me. There have always been daytraders and hopefully there always will 
be for without them there will be no markets or at least the markets will 
not have the liquidity we see today. The volatility issue is something that 
should be addressed in terms that will not eliminate small investors. 
Raising the minimum bamance for a margin account to $25K will eliminate 
many small investors from participating in the market as an active trader.
     
If the intent of this proposal is to clamp down on the daytrader abuse and 
tragedy we have seen highlighted by the media this last year I think it is 
misdirected. The problem the media and you should focus on is the behavior 
and policies of many of the so called "daytrading rooms" that will provide 
lines of credit that can quickly spin out of control and ruin the 
participants life. However,  I am sure that this has been considered in 
your deliberations so I am left to conclude that this is a move promoted by 
Wall Street firms to recover some of the commission profits they have lost 
in recent years due to the advent of direct access brokerage. I do not keep 
a balance in my account in excess of what I need to trade carefully and 
decisively. I pursue trading as a business so profits are used to build up 
the business, invest in other financial vehicles, and to just take home as 
my reward. I follow strict rules I have developed and have found that these 
rules in addition to my direct-access broker's margin requirements have 
allowed me to trade with minimal, calculated, controlled losses over time 
while still providing profit opportunities.
     
I do not need or want increased margin. In my opinion it would make things 
worse as undisciplined individuals get themselves in trouble. Why would you 
want that to happen? Who does this benefit? The small investor? I don't 
think so. My broker requires $10K to open a margin account,  if you ever go 
below a $5K balance your trading privileges are suspended (except to close 
any open positions) until you bring the balance back up to $7K. A $2,000 
balance to open a margin account is insufficient, in my opinion. A $25K 
balance is prohibitive and unnecessary. My recommendation is that you do a 
survey of the different brokerages to find a middle ground that is both 
responsible and fair to the small investor. That is what SOES was supposed 
to be about, leveling the playing field for the small investor. Please do 
not shut out the small investors by raising the minimal balance for a 
margin account to $25K.
     
In closing I present an analogy for your consideration. I went to college a 
long time, even got a Ph.D. Sometimes I talk with people who ask me what I 
do and expect to understand it all with a 5-10 minute explanation. This is 
ridiculous. If I could tell you everything I know in 10 minutes why did I 
go to college for 10 years? I think this is an appropriate analogy for 
trading. It is no more reasonable for someone to be able to understand 
molecular biology in a few minutes than it is for someone to sit down in 
front of a computer and daytrade a $10K account to $1million in a few 
months. Yet some people think that is what daytrading is about, getting 
rich quick and easy. The point is trading needs to be presented to the 
public and to those who want to trade as a profession. A responsible and 
successful individual will get the necessary education and experience to 
practice a profession. Knowledge, discipline, hard work, sacrifice and lots 
of experience got me a Ph.D. and with the same components and dedication I 
am developing myself as a trader.
     
I hope that this proposal is not passed and I urge you to reconsider its 
merits.
     
David Batey