ARBITRATION: RULE G-35

Volume 16, Number 1 JANUARY 1996

Route To: Manager, Muni Department

Amendment Filed and Approved The Board has filed an amendment to its Arbitration Code (rule G-35) to confer additional authority upon arbitrators serving under its arbitration program. The SEC has approved the amendment on an accelerated basis.

On November 9, 1995, the Board files with Securities Exchange Commission (SEC) a proposed amendment to Section 25 of rule G-35, the Board's Arbitration Code.¹ Section 25 currently provides that the panel of arbitrators shall be empowered to interpret and determine the applicability of all provisions under the Board's Arbitration Code, and that any such interpretation or determination shall be final and binding. The amendment confers additional authority upon the arbitrators to take appropriate action to obtain compliance with any of their rulings. On November 16, the SEC granted accelerated approval to the proposed amendment.

Since 1977, the Securities Industry Conference on Arbitration (SICA) has worked to develop a Uniform Code of Arbitration (Uniform Code) in an effort to promote consistancy in the securities industry arbitration process. The Board's Arbitration Code closely follows the Uniform Code. Over the years, SICA has modified and refined its Uniform Code. The proposed rule change is intended to conform Section 25 of the Board's Arbitration Code to Section 22 of the Uniform Code.

November 16, 1995

TEXT OF AMENDMENT (Language between *asterisks* is proposed new language; language between {brackets} is proposed deleted language.)

RULE G-35. ARBITRATION

Every broker, dealer and municipal securities dealer shall be subject to the Arbitration Code set forth herein. Arbitration Code Section 1 through Section 24. No change. Section 25. Interpretation of Arbitration Code. The {panel of} arbitrators shall be empowered to interpret and determine the applicability of all provisions under this Arbitration Code and *to take appropriate action to obtain compliance with any ruling by the arbitrator(s).* {any s} *S*uch interpretation*s* {or determination} *and actions to obtain compliance* shall be final and binding upon the parties. Section 26 through Section 36. No change.

ENDNOTES

[1] File No. SR-MSRB-95-16. Comments submitted to the SEC should refer to this file number.

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