Regulatory Notice 07-37

Extension of Pilot Program Increasing Position and Exercise Limits for Stock Options

Executive Summary

SEC amendments to NASD Rule 2860 extend until March 1, 2008, a pilot program increasing certain stock options position and exercise limits. The pilot program was scheduled to expire on September 1, 2007.

The rules, as amended, are set forth in Attachment A. The amendments become effective September 1, 2007.

Questions concerning this Notice may be directed to Gary L. Goldsholle, Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8104; or James L. Eastman, Assistant General Counsel, OGC, at (202) 728-6961.