This rule is no longer applicable. NASD
Rule 12400 has been superseded by FINRA Rule 12400. Please consult the appropriate FINRA Rule.
(a) Neutral List Selection System
The Neutral List Selection System is a computer system that generates, on a random basis, lists of arbitrators from NASD's rosters of arbitrators for the selected hearing location for each proceeding. The parties will select their panel through a process of striking and ranking the arbitrators on lists generated by the Neutral List Selection System.
(b) Arbitrator Rosters
NASD maintains the following roster of arbitrators:
• A roster of non-public arbitrators as defined in Rule 12100(p);
• A roster of public arbitrators as defined in Rule 12100(u); and
• A roster of arbitrators who are eligible to serve as chairperson of a panel as described in paragraph (c). Arbitrators who are eligible to serve as chairperson will also be included in the roster of public arbitrators, but will only appear on one list in a case.
(c) Eligibility for Chairperson Roster
In customer disputes, chairpersons must be public arbitrators. Arbitrators are eligible for the chairperson roster if they have completed chairperson training provided by NASD and:
• Have a law degree and are a member of a bar of at least one jurisdiction and have served as an arbitrator through award on at least two arbitrations administered by a self-regulatory organization in which hearings were held; or
• Have served as an arbitrator through award on at least three arbitrations administered by a self-regulatory organization in which hearings were held.