Proposed Rule Change Extending the Portfolio Margin Pilot Program Set Forth in Rule 2520(g)

NASD is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to extend through July 31, 2008 the portfolio margin pilot program set forth in Rule 2520(g). The portfolio margin pilot program permits members to margin certain products according to a prescribed portfolio margin methodology and is set to expire on July 31, 2007.