Proposed Rule Change to Extend the Pilot Rule in IM-10100(f) of the NASD Code of Arbitration Procedure Relating to the California Waiver Program Until September 30, 2005

NASD is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to extend the pilot rule in IM-10100(f) of the NASD Code of Arbitration Procedure (“Code”) relating to the California waiver program until September 30, 2005.  NASD is not proposing any textual changes to the By-Laws or Rules of NASD.