Proposed Rule Change To Extend Operation of NASD's Alternative Display Facility as a Temporary Pilot

NASD has filed with the SEC a proposed rule change to extend for nine months, to July 26, 2005, the operation of NASD’s Alternative Display Facility (“ADF”) on a pilot basis.  The ADF pilot program, as approved by the SEC on July 24, 2002, and extended on April 17, 2003 and January 26, 2004, will expire on October 26, 2004.  The pilot permits members to quote and trade only Nasdaq-listed securities on or through the ADF.