Notice to Members 07-08

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

On January 25, 2007, NASD filed for immediate effectiveness with the Securities and Exchange Commission (SEC) amendments to Rule 2860 extening until September 1, 2007, a pilot program increasing certain stock options position and exercise limits. The pilot program was scheduled to expire on March 1, 2007.

The rules, as amended, are set forth in Attachment A. The amendments become effective March 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.