Notice to Members 06-09

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

On February 16, 2006, NASD filed for immediate effectiveness with the Securities and Exchange Commission (SEC) amendments to Rule2860 extending until September 1, 2006, a pilot program increasing certain stock options position and exercise limits. The pilot program was scheduled to expire on March 3, 2006.

The rules, as amended, are set forth in Attachment A.

The amendments became effective February 16, 2006.

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