Proposal to Adopt New NASD Rule 3160 Relating to Extension of Time Requests

NASD is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to adopt new Rule 3160 to require (1) all clearing firm members for which NASD is the designated examining authority ("DEA") pursuant to Rule 17d-1 under the Act  to submit to NASD requests for extensions of time for payment, under Regulation T promulgated by the Federal Reserve Board ("FRB"),  or delivery of securities, pursuant to Rule 15c3-3(n) under the Act;  and (2) each clearing firm member for which NASD is the DEA to file a monthly report with NASD indicating all broker-dealers for which it clears that have overall ratios of requested extensions of time to total transactions for the month that exceed a percentage specified by NASD.