Proposal to Amend Rule 2860-Options Rules

This filing was withdrawn and replaced by SR-NASD-2006-007.

NASD has filed with the SEC a proposed rule change to amend Rule 2860 to: (a) revise the definition of the term "underlying index" to include all indexes underlying standardized index options and other indexes that meet certain specified criteria; and (b) allow members to calculate the position limits, in accordance with volume and float criteria specified by the options exchanges, for conventional equity options overlying securities that are part of the FTSE World Index Series.