Proposed Extension of the Pilot Relating to Manning Price-Improvement Standards for Decimals

NASD has filed with the SEC a proposed rule change to extend retroactively to July 1, 2004, and prospectively through December 31, 2004, the current pilot price-improvement standards for decimalized securities contained in NASD Interpretive Material 2110-2 - Trading Ahead of Customer Limit Order ("Manning Interpretation" or "Manning"). Without such an extension, these standards would have expired on June 30, 2004. NASD does not propose to make any substantive changes to the pilot; the only changes are making this proposal effective on a retroactive basis to July 1, 2004 and extending the pilot's expiration date to December 31, 2004.