Amendment to Composition of NASD Board

NASD has filed with the SEC a proposed rule change to the By-Laws of the National Association of Securities Dealers, Inc. ("NASD" or "Association") to address several corporate governance issues, including the treatment of staff Governors for purposes of Industry/Non-Industry balancing; the role of the National Nominating Committee (NNC) in contested elections; the petition process by which individuals and slates can be included in the election process; and the industry classifications that must be represented on the Board;  and provide other clarifying amendments, including the addition of certain definitions.  Additionally, the amendments reflect the new NASD corporate structure, including the impending separation of The Nasdaq Stock Market, Inc. (Nasdaq) and NASD and the creation of NASD Dispute Resolution, Inc., a wholly owned subsidiary.