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Change to Policy on Accepting Claims for Arbitration Involving Exempted Securities

NASDR has filed with the SEC a proposed rule change to the Code of Arbitration Procedure (Code) of the National Association of Securities Dealers, Inc. to change the interpretation of the Code such that claims relating to transactions in exempted securities, including government and municipal securities, may be submitted to the Office of Dispute Resolution (Office) for arbitration under the NASD's Code of Arbitration Procedure (Code) without limitation. Accordingly, when such claims arise involving public customers, Rule 10301 of the Code will require member firms and associated persons to arbitrate them at the request of the customer. In addition, when such claims arise between members and other members or associated persons, Rule 10201 (which governs intra-industry disputes) will require them to be arbitrated at the request of one of the parties. Finally, when such claims arise between a member firm and a customer, customers may be required under the terms of a predispute arbitration agreement to arbitrate the claims.

Title Format - Size Status
Text of Proposed Rule Change PDF - 38.69 KB
Federal Register Notice PDF - 28.77 KB
Approval Order PDF - 21.23 KB