Proposed Rule Change to Reflect Nasdaq's Separation from NASD Upon Nasdaq's Anticipated Approval as a National Securities Exchange

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend the Plan of Allocation and Delegation of Functions by NASD to Subsidiaries ("Delegation Plan"), NASD By-Laws, NASD Regulation By-Laws, NASD Dispute Resolution By-Laws, and NASD rules to reflect Nasdaq's separation from NASD upon Nasdaq's anticipated approval as a national securities exchange, to make certain changes to the rules that govern quoting and trading through the NASD Alternative Display Facility ("ADF") and to establish rules for the trade reporting of transactions otherwise than on an exchange through the new Trade Reporting Facility.