Proposed Rule Change to Extend the Provisions of NASD Rule 2210(c)(3) and Interpretive Material 2210-5 on a Pilot Basis

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to extend for 120 days, to December 29, 2005, the provisions of NASD Rule 2210(c)(3) and Interpretive Material 2210-5 (collectively, the "Rules") on a pilot basis, unless extended or permanently approved before that date.  The Rules, as approved by the SEC on February 29, 2000, and extended on August 10, 2001, and August 7, 2003, will expire on August 31, 2005.  The Rules permit members and associated persons to include bond mutual fund volatility ratings in supplemental sales literature.