The underlying purpose of the NASD is to be a self-regulatory agency for the membership. The membership is composed of approximately 5500 firms, 90% of which are small broker dealers by the NASD's definition. The industry members on the Board of Governors have customarily been hand picked and consequently elected by the board members themselves. Through the magic of politics, these seats have somehow become the "property" of a few very large and powerful firms. The small firms have completely lost representation in an organization which they comprise 90% of the membership. No agency, especially one that was formed to be self-regulating, can be governed effectively and fairly by a small minority of the members without representation of the majority.

My purpose in seeking election to the Board of Governors is to be a voice of the majority-the small broker dealer. All of my 17 years in this industry has been with small broker dealers. I feel my experience in operating all aspects of a small firm gives me insight into the needs and concerns of the independent broker dealer. Serving on the board of the CAIBD combined with our affiliation with the IBDA will keep me in touch with the needs of small, independent firms. This will be crucial for me to be an effective representative.

We must get the NASD back on track to be what it was conceived to be in the first place-a fair and impartial self-regulatory organization representing all firms equally. This is vital in order to stem the erosion of public confidence in our industry.

I will be a fair and impartial representative of all the member firms to keep the NASD from blindly ignoring our needs and concerns. There is no disagreement about the need for change at the NASD. Mr. Zarb has stated publicly on several occasions that he wants and needs ideas and input from the membership in order to effect change in the way the NASD operates. We must take this request quite literally and be proactive in order for constructive changes to be made. It will be hard work. I look forward to the challenge to serve you.

I appreciate your support and would be happy to discuss any concerns you might have. My number is 619-551-2804 or you may e-mail me at laraeb@sktrading.com.

Sincerely,