Proposed Rule Change to Provide that Absent Specification to the Contrary in an Award, When Arbitrators Order Opposing Parties to Pay Each Other Damages, the Monetary Awards Shall Offset.

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend Rule 12904 of the Code of Arbitration Procedure for Customer Disputes (“Customer Code”) and Rule 13904 of the Code of Arbitration Procedure for Industry Disputes (“Industry Code”) (together, “Codes”) to provide that absent specification to the contrary in an award, when arbitrators order opposing parties to pay each other damages, the monetary awards shall offset, and the party that owes the larger amount shall pay the net difference.