Subject: File No. SR-NASD-2005-046
From: Steven B. Caruso
Affiliation: Maddox Hargett & Caruso, P.C.

July 21, 2005

July 21, 2005

Jonathan G. Katz
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0609

Re: File Number SR-NASD 2005-046

Dear Mr. Katz:

The purpose of this letter is to provide the Securities and Exchange Commission with comments on the above referenced proposed rule change that was filed by the National Association of Securities Dealers, Inc. on April 8, 2005

Let me preface this letter by stating that, although I am an attorney whose practice is exclusively devoted to the representation of public investors in their disputes with the securities industry, this rule proposal is incredulous given just the following statistics:

As of May of 2005, according to the website of the Securities Industry Association, see, e.g.,, there were 786,500 individuals who were employed in the securities industry.

- whereas -

As of January of 2002, again according to the website of the Securities Industry Association, see, e.g.,, there were 84.3 million individuals who owned equities.

The proposed rule change makes no effort to justify why statutory employment discrimination claims brought by a limited number of securities industry employees should be more favored than statutory securities claims brought by public customers.

So when the NASD attempts to justify its submission of the proposed rule change, with its contention that lower fees are needed in order to ensure that associated persons who have statutory employment discrimination claims are able to effectively vindicate such claims, I would hope that the Commission will inquire why a statutory securities law claim brought by an aggrieved public customer be any less worthy of vindication?

Thank you for the opportunity to comment on this matter and your careful consideration of the issues that I have addressed would be appreciated.

Very truly yours,

Steven B. Caruso
Maddox Hargett & Caruso, P.C.
80 Broad Street, 5th Floor
New York, N.Y. 10004
212 837-7908