Subject: SR-NASD-98-21
Date:    5/8/98 5:17 PM
     
     
     
May 8, 1998
     
Mr. Jonathan Katz
Secretary
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC   20549
     
RE:  SR-NASD-98-21
     
Dear Mr. Katz:
     
As a public customer of the NASDAQ market, I would like to voice my 
objection to extending the Actual Quote Size rule to all stocks in the 
NASDAQ market.  The minimum quote rule has negatively impacted the 
liquidity of the stocks in the pilot program.  The ability of market 
makers to use 100 share lots on ECNs to effectively kick out orders or 
make getting filled in larger orders much more difficult than in the 
past is definitely not in the best interest of individual investors, or 
the market as a whole.  The big fallacy that it has not impacted the 
spreads or liquidity in these stocks is inane.  The reason the 
"official" spreads have not widened is due to ECNs that are showing 100 
or 200 shares being alone on the bid or offer.  The "effective" spread 
for anyone needing to get into or out of 500 or more shares of that 
stock is actually much greater than before, because after their first 
100 shares are filled the next 400 or more come at the next price level, 
thus creating a wider "effective" or actual spread.  If this program is 
extended to more inherently illiquid stocks, of which much of the NASDAQ 
market is made up of, it will make many of these stocks not even worth 
trading to me personally due to their lack of liquidity.
     
Thank you in advance for considering my opinion.
     
Sincerely,
     
     
Patrick Vescovo
2322 Matador Circle
Austin, TX 78746