Proposed Rule Change Relating to Section 3 of Schedule A to the NASD By-Laws; Filed for Immediate Effectiveness

On August 20, 2004, NASD filed with the SEC for immediate effectiveness a proposed rule change to amend Section 3 of Schedule A to the NASD By-Laws to remove references to the SEC. In addition, NASD filed portions of a Notice to Members relating to interpretations of Section 3 of Schedule A to the NASD By-Laws. NASD also filed two self-reporting forms that are to be used by members to report trade data that is not captured by NASD’s trade reporting systems.