Subject: File No. S7-3-98
Date:    4/24/98 8:34 PM
     
     
Mr Jonathan Katz,
     
Please be advised that as an investor in Pink Sheet and OTCBB stocks, I 
strongly oppose the new rules the SEC is seeking as stated in File No. 
S7-3-98. It seems clear to me that such action would reduce Market Maker 
participation, reduce or eliminate liquidity and more than likely widen 
spreads with are already to wide. 
     
I sympathize with your desire to reduce Market Maker abuses but strongly urge 
you to not "Throw the baby out with the bath water". Liquidity is essential 
for tens of thousands of investors and Market Makers provide that liquidity. 
Further, capital for hundreds of start-up businesses would be placed out of 
reach if there are no Market Makers to buy/sell the stock. 
     
The SEC should be striving for a competitive market and the education of 
investors, not some heavy handed regulations by which many will suffer. 
     
I urge you to reconsider your position on this subject. Surely there are other 
avenues that you can take which would be less onerous. I would suggest that 
you study the situation in partnership with the National Quotation Bureau and 
the NASD to determine what the problems are and the BEST way to deal with 
them. You must realize that not all problems can be dealt with thru 
regulation. Enforcement and education are paramount. 
     
You should not be trying to push through the same regulations you attempted to 
put in place in 1991. Be up front and ask for comments from investors before 
seeking new regulations which will affect them.
     
With Best Regards,

Del Parker