From: Steve Blalock [sblalock@triad.rr.com]
Sent: Thursday, January 01, 2004 1:27 PM
To: rule-comments@sec.gov
Subject: File No. S7-27-03

In regards to the proposed amendments to rules governing pricing of Mutual Fund 
Shares, I feel the agency has not taken into full account the negative effect on 
401(k) participants. 401(k) plan participants would essentially become second-class 
mutual fund traders because of the proposed 4 p.m. cutoff rule for all investors, 
which includes 401(k) recordkeepers. Because of the processing time required of 
401(k) trades, this rule would require investment decisions to be made by plan 
participants several hours earlier in order for the recorderkeeper to execute a 
trade at the end of the day.  Currently, I can wait until just before the close 
to execute a 401(k) trade and be guaranteed the closing price.  As proposed, the 
restriction disadvantages 401(k) investors since they will have absolutely no idea 
what share price they may receive when required to commit to a trade many hours in 
advance of the market close.
 
Steve Blalock
5565 Belle Avenue
Winston-Salem NC 27105