NASD Rule 10314 requires all parties to nasd arbitration to submit an executed United State that agrees to arbitrate under NASD rules. A complainant`s United States is due at the time the petition is filed; NASD will only use the request after receipt. Defendants must notify an executed United State at the time of due date or service of the response to the petition, whichever is earlier. The NASD Arbitration Procedure Code (Code) requires defendants in NASD arbitration proceedings to provide them with a response and a uniform submission agreement (United States) executed at the time of the expiry of the response to the request. NasD has learned that some members and associated persons, who are named as defendants in arbitration proceedings, neglect or refuse to file an undersigned America in a timely manner. Failure to sign and file the United States can create confusion, cause collatrial disputes, and undermine the applicability of arbitral awards. The purpose of this statement is to remind members and related persons cited as respondents that filing by a United States without a particular legal challenge is mandatory and that non-compliance may result in sanctions or disciplinary action. NASD employees have learned that some members and related persons, cited as respondents, neglect the United States or refuse to sign them. While these members and related persons may consider that the signature of the United States is not necessary, since they must in any event submit to arbitration under the Code, the non-signature of the United States may create unnecessary confusion or even ancillary disputes on the part of the opposing party and threaten the possible arbitral award. For example, Section 13 of the Federal Arbitration Act (FAA) requires that a request for confirmation of an arbitral award contain the parties` agreement to the arbitration. While a claimant can prove that a member that did not perform the United States was nevertheless required to arbitrate under the NASD rules, U.S.
non-performance may unnecessarily impede a claimant`s ability to seek confirmation of an arbitral award pursuant to Section 13 of the FAA. NasD hopes that these measures will serve as an effective reminder to members and associated persons who will be designated as interviewees in NASD arbitration proceedings, which they will have to submit to the US in due course, as provided for in the code, thus reducing the need to amend future rules or other additional measures to resolve the issue. . . .