NASD Rule 2520From: Russell, Connie [CRussell@txfb-ins.com]
Sent: Tuesday, August 28, 2001 6:24 PM
To: 'chairmanoffice@sec.gov'; 'rule-comments@sec.gov'; 'ombuds@nasd.com'
Cc: 'Phil_Gramm@gramm.senate.gov'; 'senator@hutchison.senate.gov'
Subject: NASD Rule 2520

To All Concerned: 
I am extremely concerned and displeased with the NASD Rule 2520 that will 
soon take effect. These changes will 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 
reason given for these changes is to 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 into 
the hands of institutions. The amount of capital in an investor's account is 
not an indicator of whether the trader will be a successful daytrader. 

A larger account, in fact, means more margin and thus MORE risk. The most 
tragic cases 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 who 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 see 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 greater risk of losing more than they can afford. How is that 
protecting us from ourselves? If trading with $2000 is so risky, how will 
trading with $25,000 be a lesser risk?  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 wealthy investors, sabotaging the 
American dream of independence for all those that do not have enough money 
to get 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. While I am uncertain 
who these particular Senators were, I believe that my representatives know 
that their job descriptions do not include determining what I can and cannot 
do with any amount of my own hard-earned money.

Furthermore, to make day trading only available to those with a margin 
account is ridiculous! If this type of trading is so risky then shouldn't 
it be the other way around and be restricted to cash only to reduce risk? 
Nothing about this rule adds up to anything except more control and money 
for fat cat institutions and less freedom for the rest of us.

Thank you for your time. 

Connie M. Russell 
Database Administrator 
Southern Farm Bureau Casualty Insurance Co. 
PO Box 2689, Waco, Tx 76702 
(254)751-2501