Proposed Rule Change to Amend NASD Rule 5100 (Short Sale Rule) to Allow Members to use, for a Transitional Period, the Nasdaq Exchange Best (inside) Bid Rather than the National Best (inside) Bid for Purposes of Application of the Rule

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend NASD Rule 5100 to allow members to use, for a transitional period only, the Nasdaq Exchange best (inside) bid rather than the national best (inside) bid for purposes of application of the rule. Pursuant to SR-NASD-2005-087, Rule 5100 will become effective on the date upon which The Nasdaq Stock Market LLC (the "Nasdaq Exchange") operates as a national securities exchange for Nasdaq-listed securities. Currently, that date is projected to be August 1, 2006.