NASD Notice to Members 07-13 - March 2007

SEC Approves Amendments to NASD Code of Arbitration Procedure Concerning Subpoenas and Payment of Arbitrators; Effective Date: April 2, 2007

Executive Summary

The Securities and Exchange Commission (SEC) has approved amendments to the subpoena rule as set forth in Rule 10322 of the NASD Code of Arbitration Procedure (Code)1 to allow only arbitrators to issue subpoenas, whether for discovery in arbitration or for appearance at a hearing before the arbitrators.2 The SEC also approved an amendment to the payment of arbitrators rule as set forth in IM-10104 to provide for the payment of a $200 honorarium per case for each arbitrator who considers contested motions for the issuance of subpoenas.3

The text of Rule 10322 and IM-10104, as approved, are set forth in Attachment A of this Notice. The changes to Rule 10322 will become effective on April 2, 2007, and will apply to subpoenas issued on or after that date, regardless of when the case was filed. The changes to IM-10104 will apply to decisions rendered on a contested subpoena request on or after April 2, 2007.

Questions regarding this Notice may be directed to Jean I. Feeney, Vice President and Chief Counsel, Dispute Resolution, at (202) 728-6959; or Mignon McLemore, Assistant Chief Counsel, Dispute Resolution, at (202) 728-8151.