Sent: Monday, June 24, 2002 9:32 PM
Subject: Comment on NASD ADF Proposals

George A Robles
6415 Puerto Drive
Rancho Murieta, CA 95683
 
 
June 15, 2002

Jonathan G. Katz 
Secretary 
U.S. Securities and Exchange Commission 
450 Fifth Street, N.W. 
Washington, DC 20549-0609
Subj: File No. SR-NASD-2001-90; NASD Alternative
Display Proposals

Dear Mr. Katz,

As a small investor, I am concerned about the passage
of the ADF/SuperMontage initiatives. It looks like the
NASD is attempting to barrage the SEC with proposal
after proposal, in the hopes that you will get so
overwhelmed that you will just "give in" and give them
what they want.
The SuperMontage proposal that the SEC has approved is
an example. However, are you aware that since the
passage of this sweeping proposal by the SEC, the NASD
has changed the ways and methods that it will operate
by more than 30% from the original proposal? This is
of concern to me and my family since I make my living
trading. 
I utilize a direct-access brokerage firm that sends
its orders to both market-makers and ECNs. I now
understand that the NASD has "sneaked" in a provision
that would decrement my quote even if I get no
execution. That means that my order would get no
representation on the quote montage. It also means
that my brokerage firm is violating their
best-execution obligations by not getting me best
execution. But, they tried, and because the NASD got
in the way, they failed. I think that the NASD in this
instance owes me my price because their SuperMontage
system is the one that denied me my execution. I think
that if there is an ADF, that would help, but since
the ADF does not have any specific rules about
execution, execution is "voluntary". So does my order
just get ignored? If it is ignored, who is in trouble
- the people who posted the quote or the people who
executed around it at a worse price?
Isn't that a bad thing? To me that seems to undo the
Order-Handling Rules that the SEC so carefully passed
in the late 1990's.
I urge you to take a look at the tactics that the NASD
is employing to sneak things by you. I think that the
SEC is caught up in "Enron-itis" and it is not being
careful with these NASDAQ proposals that will damage
the markets forever. 
 
 
Regards,
 
 
George A Robles