Short List Option

To increase the parties' input into selecting replacement arbitrators, FINRA allows parties to agree to receive a "short list" of potential arbitrators to find a replacement. FINRA will notify parties by letter of the option to stipulate to the use of a short list to select a replacement arbitrator. Parties are free to use a short list by mutual agreement at all stages of the proceeding even if ranked arbitrators remain on the list.

If the parties all stipulate to use the short list option, the list selection algorithm will randomly generate a list of potential replacement arbitrators. FINRA staff will prescreen the arbitrators to confirm their availability for scheduled hearing dates on the merits. All parties will receive the list of arbitrators and a copy of each arbitrator's Disclosure Report. Each side may strike and rank the arbitrator names within a prescribed number of days. FINRA will combine each side's list to find the highest ranked replacement arbitrator.

If the parties do not all stipulate to use the short list option, FINRA will invite any arbitrators previously ranked by the parties to serve. If there are no previously ranked arbitrators, FINRA will "extend the list," as required by the Codes of Arbitration Procedure, by randomly generating an arbitrator's name using the list selection algorithm to appoint the replacement arbitrator. Parties may only challenge arbitrators selected by this method for cause.

When a Postponement is Needed to Use the Short List Option

When a hearing is scheduled within ten calendar days of an arbitrator's withdrawal, removal, or unavailability, the parties will need to stipulate to a postponement to use the short list option to replace an arbitrator. Parties may incur postponement fees pursuant to Customer Code Rule 12601 and Industry Code Rule 13601 when hearing dates are postponed. There is no fee for using the short list option.