SR-NASD-2006-100

Proposed Amendment to Rule 2860 Regarding Option Disclosure Documents Delivery Requirements

NASD is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend Rule 2860 (Options) to (1) require that a copy of each amendment to the options disclosure document, Characteristics and Risks of Standardized Options, be distributed to each customer not later than the time of the delivery of a confirmation of a transaction in the category of options issued by The Options Clearing Corporation ("OCC") to which the amendment pertains, and (2) clarify that revisions to the Special Statement for Uncovered Option Writers be distributed to each customer approved for writing uncovered short options not later than the time of the delivery of a confirmation of a transaction in options issued by the OCC.