From: Audis Byrd
Sent: October 17, 2005
Subject: File No. 4-500

Mr. Katz

I strongly feel that you should change Rule 3360 as requested in R. Cromwell Coulson's letter date January 3, 2005 that had the following suggested wording. Thanks for your review and action on this issue.

The Proposed Amendment to Rule 3360

The amendment to existing Rule 3360 that we propose, with inserted language in italics and deleted language in brackets, is as follows:
3360. Short interest Reporting
(a) Each member shall maintain a record of total "short" positions in all customer and proprietary firm accounts in [securities included in The Nasdaq Stock Market and in each other security listed on a registered national securities exchange] all Nasdaq National Market and Nasdaq SmallCap securities, all Consolidated Quotation Service (CQS) securities traded in the over-the-counter market, and all OTC Equity Securities as defined in Rule 6600 that are [and] not otherwise reported to another selfregulatory organization and shall regularly report such information to NASD in such a manner as may be prescribed by NASD.
The remainder of the Rule would not be changed.

Best Regards,
Audis Byrd