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13403. Generating and Sending Lists to the Parties

This rule is no longer applicable. NASD Rule 13403 has been superseded by FINRA Rule 13403. Please consult the appropriate FINRA Rule.

The Industry Code will apply to claims filed on or after April 16, 2007. In addition, the list selection provisions of the Industry Code will apply to previously filed claims in which a list of arbitrators must be generated after April 16, 2007; in these cases, however, the claim will continue to be governed by the remaining provisions of the old Code unless all parties agree to proceed under the new code.

For disputes involving statutory employment discrimination claims, see Rule 13802.

(a) Disputes Between or Among Members, or Employment Disputes Between or Among Member Firms and Associated Persons Relating Exclusively To Employment Contracts, Promissory Notes, or Receipt of Commissions
(1) If the panel consists of one arbitrator, the Neutral List Selection System will generate a list of eight non-public arbitrators from the NASD's non-public chairperson roster.
(2) If the panel consists of three non-public arbitrators, the Neutral List Selection System will generate:
  • A list of 16 arbitrators from the NASD's non-public roster; and

  • A list of eight non-public arbitrators from the NASD's non-public chairperson roster.
(3) If the panel consists of three arbitrators, the Neutral List Selection System will generate the non-public chairperson list first. Chair-qualified arbitrators who were not selected for the non-public chairperson list will be eligible for selection on the non-public list. An individual arbitrator cannot appear on both the non-public chairperson list and the non-public list for the same case.
(4) The Neutral List Selection System will exclude arbitrators from the lists based upon current conflicts of interest identified within the Neutral List Selection System.
(b) Other Disputes Between or Among Members and Associated Persons
(1) If the panel consists of one arbitrator, the Neutral List Selection System will generate a list of eight public arbitrators from NASD's public chairperson roster.
(2) If the panel consists of three arbitrators, the Neutral List Selection System will generate:
  • A list of eight arbitrators from NASD's non-public arbitrator roster;

  • A list of eight arbitrators from NASD's public arbitrator roster; and

  • A list of eight public arbitrators from the NASD's public chairperson roster.
(3) If the panel consists of three arbitrators, the Neutral List Selection System will generate the public chairperson list first. Chair-qualified arbitrators who were not selected for the public chairperson list will be eligible for selection on the public list. An individual arbitrator cannot appear on both the public chairperson list and the public list for the same case.
(4) The Neutral List Selection System will exclude arbitrators from the lists based upon current conflicts of interest identified within the Neutral List Selection System.
(c) Sending Lists to Parties
(1) The Director will send the lists generated by the Neutral List Selection System to all parties at the same time, within approximately 30 days after the last answer is due. The parties will also receive employment history for the past 10 years and other background information for each arbitrator listed.
(2) If a party requests additional information about an arbitrator, the Director will request the additional information from the arbitrator, and will send any response to all of the parties at the same time. When a party requests additional information, the Director may, but is not required to, toll the time for parties to return the ranked lists under Rule 13404(c).
Adopted by SR-NASD-2004-011 eff. April 16, 2007.

Selected Notices: 07-07

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