Federal Register #SR-FINRA-2026-017

SEC Notice: FINRA Proposed Rule Change to Arbitration Procedures

This notice concerns a proposed regulatory change affecting arbitration procedures in the FINRA Dispute Resolution Services forum. - Government Buyer: - Securities and Exchange Commission (SEC) - Financial Industry Regulatory Authority (FINRA) - No products or commercial services are being procured; this is a regulatory update. - Key Proposal Details: - Amendments to FINRA Codes of Arbitration Procedure to improve arbitrator list selection for customer and industry disputes - Replacement of extended list appointments with new lists for initial panel appointments - Codification of the Short List Option for replacing arbitrators after panel appointment - Compensation for replacement arbitrators who review case records - Use of a list selection algorithm and eligibility criteria for arbitrators - Unique Requirements: - Focus on fairness, transparency, and increased party input in arbitrator selection - Solicitation of public comments on the proposed rule change - No OEMs, vendors, or commercial competitors are involved, as this is not a procurement opportunity.

Description

The Securities and Exchange Commission has filed a notice regarding a proposed rule change by the Financial Industry Regulatory Authority, Inc. (FINRA). The rule change aims to amend the Codes of Arbitration Procedure to modify provisions related to the selection of arbitrator lists. The proposed amendments include changes to the process of arbitrator list selection at initial panel appointment and replacement of arbitrators after initial panel appointment. The changes seek to provide parties with greater input into arbitrator selection and codify current practices such as the voluntary Short List Option and payment to replacement arbitrators.

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