Appointment of the Arbitrators

Under the Uniform Code, the parties participate actively in the selection of the arbitrators. However, it is important for you to review the arbitrator selection rules of the sponsoring organization as the degree of party participation in arbitrator selection may vary.

 

Under the NASD arbitrator selection rules, an automated process called the Neutral List Selection System (NLSS) generates lists of arbitrators for parties to either strike or rank according to their preference. NLSS generates these lists by sorting and searching for arbitrators according to public and non-public classification, geographic hearing location, rotation, conflict of interest, and upon request, subject-matter knowledge. Once the parties rank the arbitrators, staff uses NLSS to consolidate party rankings and appoint the arbitrators.

 

At other sponsoring organization, the Director may appoint an arbitrator or a panel of arbitrators, subject to challenges by the parties. The New York Stock Exchange (NYSE) offers parties, upon their agreement, the option of selecting how arbitrators are selected.

 

The Director will notify the parties of the names, current affiliations, and 10 years' business histories of the proposed arbitrators. In addition, parties will be informed of any information disclosed pursuant to the Uniform Code and the Code of Ethics for Arbitrators by any arbitrator. The arbitrators will be informed of the names of the parties to the dispute, counsel, witnesses, and the nature of the issues raised. If any arbitrator determines that he or she cannot render a fair and impartial award, the Director will appoint a substitute arbitrator.

 

In a small claim, if the arbitrator believes the controversy is such that additional expertise is needed, he or she can direct that an arbitration panel be formed with two additional arbitrators. The majority of this panel will be from the public. The arbitrator also may request that a hearing be held or that additional documentation be provided.