Proposed Rule Change to Extend for an Additional Two-Year Period NASD's Authority Under the Cease and Desist Pilot Program

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to extend for an additional two-year period, to June 23, 2007, NASD's authority under the cease and desist pilot program.  At this time, NASD is not proposing any substantive changes to the rules covered by the pilot program; the only changes regard extending the pilot's expiration date to June 23, 2007, and technical changes to certain cross-references in rules covered by the pilot program.