Subject: File No. SR-NASD-2005-094
From: Teresa M Gillis
Affiliation: Attorney, Shustak Jalil & Heller

September 20, 2005

To the Honorable Secretary
Jonathan G. Katz
Securities and Exchange Commission
100 F. Street, N.E.
Washington, D.C 20549-9393

Re: File No. SR-NASD-2005-094
Public Arbitrator Definition

Dear Secretary Katz:

I write to comment on Proposed NASD Rule 10308 as well as NYSE Proposed Rule 607, SEC File Number SR-NYSE-2005-43, which seek to redefine the term public arbitrator.

I believe the current system of arbitration administered by the SROs must go further to eliminate the potential for conflicts of interest and to redress the publics perception of bias in the system. I have never seen a case that required an industry arbitrator to explain the case to the other arbitrators; and even if there were ever such a case, there is no reason to believe that education of the panel could not be accomplished through expert testimony, as is common. There is no reason that all three arbitrators should not be public arbitrators if the parties so choose. Therefore, the requirement that one of the arbitrators be from the securities industry should be abolished.

Respectfully yours,
Teresa M. Gillis
Shustak Jalil & Heller