NASD Notice to Members 06-64

SEC Approves Amendments to Rule 10308 Regarding the Classification of Arbitrators; Effective Date: January 15, 2007

Executive Summary

The Securities and Exchange Commission has approved amendments to the arbitrator classification criteria set forth in Rule 10308 of the NASD Code of Arbitration Procedure (Code) to ensure that individuals with significant ties to the securities industry may not serve as public arbitrators in NASD arbitrations.1

The text of the amendments is set forth in Attachment A. The amendments will be effective on January 15, 2007.

Questions regarding this Notice may be directed to Barbara L. Brady, Vice President and Director of Neutral Management, at (212) 858-4352 or via email; or John D. Nachmann, Counsel, at (202) 728-8273 or via email.

1 Securities Exchange Act Release No. 54607 (October 16, 2006), 71 Federal Register 62026 (October 20, 2006) (File No. SR-NASD-2005-094).