New York Stock Exchange, Inc.

March 20, 2003

Hon. William H. Donaldson
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Dear Mr. Chairman:

I did not include any reference to Bloomberg in my letter of 3/11/03 on NYSE Liquidity Quote as we were trying to be directly responsive to the comments of the Market Regulation staff. However, since Bloomberg continues to paper the file with policy-laden letters, we feel obliged to offer a few brief comments.

Behind Bloomberg's public policy façade is a purely commercial intent - - a desire to maintain the status quo (and therefore their entrenched position) in the market information business.

In Bloomberg's view of the world, the NYSE's role is to provide

Bloomberg with raw material and Bloomberg's role is use that raw material to create finished products. With products like NYSE OpenBook and NYSE Liquidity Quote, the NYSE moves closer to Bloomberg's self-appointed space. But, if Bloomberg combines our ingredients with others', it will alter our products, displace our brand and remove the NYSE from Bloomberg's competitive space. To this end, it enlists the Commission's help.

It is also worth noting that Bloomberg has an execution venue, TradeBook, where they attempt to compete directly with the NYSE. In that capacity they would like to use NYLQ in a generic way to attract order flow to their ECN. Simply put, Bloomberg is trying to enlist the SEC to help it expropriate our innovation for the benefit of their ECN.

Bloomberg's issue with NYLQ is all about its commercial and competitive interests. In our view, safeguarding or promoting those interests is not an appropriate role for the Commission to play.


Richard A. Grasso
Chairman and Chief Executive Officer
New York Stock Exchange, Inc.

c: Hon. Paul S. Atkins, Commissioner, SEC
Hon. Roel C. Campos, Commissioner, SEC
Hon. Cynthia A. Glassman, Commissioner, SEC
Hon. Harvey J. Goldschmid, Commissioner, SEC