NASD Notice to Members 00-22 - April 2000

SEC Approves New Voluntary Single Arbitrator Pilot Program for a Two-Year Period; Effective Date: May 15, 2000

Executive Summary

On February 15, 2000, the Securities and Exchange Commission approved the proposal of NASD Regulation, Inc. (NASD RegulationSM) to add a new rule to the National Association of Securities Dealers, Inc. (NASD®) Code of Arbitration Procedure (Code). The new rule–Rule 10336–will be entitled "Single Arbitrator Pilot Program" and will be effective for a two-year period. The Pilot Program is voluntary and will allow parties with claims of $50,000.01 to $200,000 to select a single arbitrator to hear their cases, rather than the panel of three arbitrators they would otherwise select. The Pilot Program will also allow the parties to communicate directly with the single arbitrator under certain conditions. Rule 10336, which will become effective on May 15, 2000, will result in lower arbitration fees to the parties and will enhance the dispute resolution process by affording quicker resolution of arbitration claims by participants.


Questions regarding this Notice may be directed to Jean I. Feeney, Special Advisor, Office of Dispute Resolution, NASD Regulation, at (202) 728-6959, or via e-mail.