From: David Dsitko1 [dsitko1@msn.com]
Sent: Sunday, January 11, 2004 1:15 PM
To: rule-comments@sec.gov
Subject: S7-26-03:


I would like to express my concerns regarding two areas of your proposal. First and 
most importantly, the 4 PM hard close will put mutual fund investors at a disadvantage 
versus individual stock investors. Most of us do not day trade our funds but it is 
important to know that we can reduce a position same day should a sharp market 
reduction occur. Under the proposed rule I would likely suffer two days of losses 
before getting out of a position. That is not fair to small investors and could be 
far more costly to the individual's account than the impact of a few hedge fund 
managers engaging in after hours trading. Please reconsider the inclusion of this rule.

Second, the timing fee should be limited to 10 days. Market timers operate on a daily 
timeframe and 60 days just punishes small investors who perhaps enter into a fund at 
the wrong time and are trying to limit their losses. A better rule would be to limit 
the number of times an investor can make a round trip in and out of a fund to perhaps 
twice a year.

David Sitko
dsitko1@msn.com