From: Gary [theussgary@yahoo.com]
Sent: Tuesday, August 28, 2001 5:46 PM
To: chairmanoffice@sec.gov; rule-comments@sec.gov; 
jsfeedback@nasdaq.com; ombuds@nasd.com
Cc: gary@hot.rr.com
Subject: New NASD Rule

I'm extremely concerned and displeased with the NASD Rule 2520 that is 
beginning to take effect. These changes now require minimum equity of 
$25,000 to be in an account on any day in which the customer day trades. 
I feel this rule to be discriminatory and biased. 
 
These amendments are biased to the Institutional Buyers and Sellers. 
The reasoning given for these changes is to help protect us from ourselves. 
I find this rule to be fascist, elitest and a discriminatory and patronizing 
conspiracy to eliminate the little guy and give the control of investment 
dollars back to the institutions. The amount of capital in a trader’s account 
is not an indicator of whether the trader will be a successful daytrader.

A larger account in fact now means more margin, and thus MORE risk. From 
my experience the most tragic cases I have witnessed have not been the 
small investors, losing a mere $2,000, which was the previous minimum 
requirement. It has been those that have started trading with large portfolios 
and no education, who have made rash and ignorant decisions, with too much 
money at risk. The same people that could afford to lose $2,000 (but not 
$25,000) will now either not be able to participate or they will take out 
loans to meet the new margin requirments. I would hate to someone have to 
take a loan out on their home in order to day trade. Giving that much money 
(borrowed money) and buying power to him/her with little or no experience 
and education is certainly putting that trader at risk of losing more than 
they can afford. How is that protecting us from ourselves, If we are dumb 
enough to risk $2,000 then wouldn't we be dumb enough to risk $25,000? If 
day trading is gambling, why hasn't our government considered a new law stating 
that if you wish to gamble in Las Vegas then you need to go to the casino's 
with at least $25,000! The reason they haven't done that is because it's absurd 
and so is this new rule!

These rules restrict and limit trading to those with money, sabotaging the 
American dream for independence for all those that do not have enough money 
to get their foot in the door. 

I am outraged by this! I was shocked to learn that a comment letter was received
 on the proposed changes from several US Senators who jointly recommended the 
 minimum requirement be raised to $50K. I will let them know, that as my elected 
 officials, they are not doing my bidding, and I will remember this next election 
 time.

Furthermore, to make day trading only available to those with a margin account 
is ridiculous! If this is so risky then why won't people be able to trade with 
a cash only account. This new rule smells fishy.

Thank You,

Gary Russell