From: sche0049 [sche0049@umn.edu]
Sent: Monday, January 12, 2004 3:55 PM
To: rule-comments@sec.gov; sche0049@umn.edu
Subject: File No. SR-NASD-2003-182 ....

       Dear Sirs:
              I am concerned that exempting all
       TRACE-eligible debt securities from TRACE
       would weaken investor protection.
              The NASD has represented that the
       TRACE reporting system is a significant
       advance in reporting real prices of bonds,
       as opposed to artifical, rigged prices set
       broker-dealers.
              Would the NASDAQ bond price reporting
       system be as good as TRACE? Unless the answer
       is a definite yes, then the SEC should reject
       the expanded exemptions from TRACE. To do
       otherwise would be going backwards to the bad
       days of fraudulent collusion by broker-dealers.
                            Yours sincerely,
                            Paul Scheurer
                            (612)-378-2877