Proposed Rule Change to Amend the Method of Selecting Arbitrators in Customer Disputes

NASDR has filed with the SEC a proposed rule change to amend Rule 10308 of the National Association of Securities Dealers, Inc. to set forth new procedures to be used to select arbitrators for arbitrations involving public customers. Under the new procedures, NASD Regulation will allow the parties to an arbitration to rank arbitrators from lists generated primarily using an automated process, providing parties with a substantial role in determining the composition of their arbitration panels. NASD Regulation is proposing conforming changes to Rules 10104, 10309, 10310, 10311, 10312, and 10313. In addition, NASD Regulation proposes to amend Rule 10315 concerning the scheduling of the first meeting of the parties and the arbitration panel to reflect that such meetings usually occur prior to the first hearing of an arbitration proceeding. Finally, NASD Regulation proposes to correctly state in the Rule 10000 Series and any other Rules the name of the NASD Regulation committee that addresses arbitration and related matters, the National Arbitration and Mediation Committee.