We report the fabrication of a highly nonlinear holey fiber made from pure silica with an effective area of just similar to2.8 mum(2) at 1550 run. We believe this to be the smallest effective area yet measured for a holey fiber at 1550 nm. We also report the operation of a 2R regenerative optical switch based on just 3.3 m of the fiber that is shown to have 30 times the nonlinear figure of merit of previous devices based on dispersion-shifted fiber. (C) 2001 Optical Society of America.