Proposed Rule Change to Amend Schedule A to the NASD By-Laws Regarding Branch Office Fees

NASD is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend Section 4 of Schedule A to the NASD By-Laws to:  (1) establish an annual branch office system processing fee; and (2) waive the annual branch office system processing fee for one branch office per member per year and, as specified in the proposed rule change, the annual branch office registration fee for one branch office per member per year.