December 14, 2006

Nancy M. Morris, Secretary
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549–1090

Re: File Number SR–NASD–2004–130

Dear Ms. Morris:

Wachovia Securities, Inc. LLC, a registered broker-dealer and NASD Member Firm, and First Clearing Corporation, Inc., registered broker-dealer and NASD Member Firm a jointly submit this letter in response to the request for comments by the U.S. Securities and Exchange Commission ("SEC or "the Commission") regarding the above-referenced amendment to Rule 2320(g) ("Three Quote Rule") originally filed by the National Association of Securities Dealers, Inc. ("NASD) on August 27, 2004, and amended on May 8 and October 19, 2006.

See Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 Relating to Amendments to Rule 2320(g) (Three Quote Rule) and Corresponding Recordkeeping Requirements Under Rule 3110(b), SEC Release No. 34–54650; File No. SR–NASD–2004–130, 71 Fed. Reg. 63812 (Oct. 31, 2006) (the "Release).

Wachovia Securities, Inc. LLC agrees with and supports the statements made in separate Comment Letters from other parties including CIBC World Markets, Canaccord, and the Securities Traders Association. We likewise object to the NASD staff’s plan to withdraw the long-standing exemptions to the Three Quote Rule that relate to execution of customer orders in Canadian securities on Canadian exchanges. See id. 71 Fed. Reg. at 63813 n.13.

We concur with the expressed concerns that withdrawing these exemptions will result in significant delays; does not result in the best interest of the customer; and posed a hindrance to achieving best execution for the customer. Additionally, no supporting rationale is given for this proposed change, nor has a cost/benefit analysis seem to be conducted with regards to this aspect of the proposal.

Therefore, before approving the proposed amendment, we also believe that the SEC Staff should call for additional study of the issue to determine whether best execution would be helped or hindered by implementation of the Three Quote Rule on Canadian exchange listed equities not included in the FTSE All-World Index.


Debra V. Moore
Manager - NASDAQ/OTC Equity Trading
Wachovia Securities, LLC

Glenn A. Hoback
Implementation Consultant - Internal Controls
Wachovia Securities, LLC