Date:   April 13, 1998
From:   Lisa Kallman
To:     Jonathan Katz
Re:     Actual Size Rule Comments  SR-NASD-98-21
     
     
As most people would like to believe, securities markets and prices are 
determined by supply and demand.  The reason that the NASD instituted an 
electronic order routing system that held market makers to their posted 
bids and offers was to provide liquidity to the market in times of high 
volume activity (i.e. - market crashes).  If market makers are allowed 
to decrease their exposure limits to 100 shares on all stocks, it will 
defeat the primary advantage of an electronic trading system and reduce 
the integrity of the whole NASDAQ market.
     
*       The market will be subject to artificial volatility on little or 
no volume.

*       Genuine order flow will not determine the price at which stocks 
trade.

*       Theoretically, the ability to manipulate stock prices will be 
increased tenfold (100 shares as opposed to 1000 shares).

*       The price of stocks with only a 100 share exposure limit often 
overreacts to pricing pressures on little or no volume.

*       In the event of a financial crisis, much needed liquidity will 
not be present in the NASDAQ market.

*       This rule gives market participants absolutely no culpability 
and/or responsibility to the their prices.

*       This rule might as well be for 10 shares instead of 100.

*       Spreads have decreased with the increase in day-trading volume.
     
Please reject the Actual Size Rule  File No. SR-NASD-98-21
     
Sincerely,
     
     
Lisa Kallman
615 Clear Spring Ln.
Leander, TX  78641