Date:    08/15/2000  11:36 AM

Subject: File No. S7-16-00. 

SEC and Chairman Levitt-
First, thanks for your efforts to make the financial markets more open, 
transparent and fair for all investors.  I am an individual investor who 
makes his living primarily with long term equity investments, but also with 
LEAPS and some short term equity investments 
     
Payment for order flow is an affront to the principals of a fair and open 
market.  It is nothing more than a kick back with a nicer sounding name and 
should be illegal.  It makes it impossible for me to determine the true costs 
that I pay on any transaction and also impossible for me to compare the costs 
I will pay to "competing" brokers.  If one broker charges me $10 but I pay an 
additional $20 in spread due to order flow payment agreements, I am paying 
more than to a broker with a straight $20 commision.  Yet I have no way of 
knowing.  Schwab tells me in the fine print of our "agreements" that they may 
accept payment for order flow, but gives me no idea of what it is, whom it 
comes from or how much it is on any individual order.  Other markets, such as 
real estate, don't allow agents or brokers to accept kickbacks from other 
service providers such as title companies, insurance companies, inspection 
services, etc.  I see no reason why these under the table payments should be 
acceptable in the securities industry.  
     
Thank you again for your efforts to improve our industry's fairness and 
equity.
     
Robert S. White