SR-NASD-2003-067

Proposed Rule Change To Extend Operation of NASD’s Alternative Display Facility as a Temporary Pilot

NASD has filed with the SEC a proposed rule change to extend for nine months the operation of NASD’s Alternative Display Facility ("ADF") on a pilot basis. The ADF pilot program, as approved by the SEC on July 24, 2002, will expire on April 24, 2003. The pilot permits members to quote and trade only Nasdaq-listed securities on or through the ADF. In addition, the proposed rule change would amend Rule 4613A to clarify that ADF market participants must have in close proximity to their ADF terminal or other approved ADF electronic interface at which they make a market in a Nasdaq security quotation data from all markets trading Nasdaq securities.