Notice to Members 04-62

SEC Approves New Rule 10334 To Allow Direct Communication Between Parties and Arbitrators

Effective Date: September 30, 2004

The Securities and Exchange Commission has approved new Rule 10334 of the NASD Code of Arbitration Procedure to permit direct communication among arbitrators and the parties to the arbitration (through their counsel) where all parties and arbitrators agree, and to establish guidelines for such direct communication.1 Included with this Notice is Attachment A, the text of the new rule. The rule will be effective on September 30, 2004.

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