Proposed Rule Change to Extend Through June 30, 2005, the Current Pilot Price-Improvement Standards for Decimalized Securities Contained in NASD Interpretive Material 2110-2 - Trading Ahead of Customer Limit Order

NASD is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to extend through June 30, 2005, the current pilot price-improvement standards for decimalized securities contained in NASD Interpretive Material 2110-2 - Trading Ahead of Customer Limit Order (“Manning Interpretation” or “Manning”). NASD does not propose to make any substantive changes to the pilot; the only change is extending the pilot’s expiration date to June 30, 2005.