Arbitrator selection has always been one of the most important parts of the arbitration process, and FINRA has strived over the years to make the process fair. Unfortunately, it is not as transparent as it might otherwise be.
FINRA’s arbitrator appointment process uses the Neutral List Selection System which FINRA claims randomly generate lists of arbitrators from FINRA’s arbitrator roster. The number of lists generated, and the number of arbitrator names per list, depend on the specific case type.
FINRA has updated its arbitrator selection page to provide a better explanation of the process and insight into the workings of pool creation, panel selection and more.
Arbitrator Selection
Hat tip to the Securities Arbitration Commentator - Spotlight on Arbitrator Selection: FINRA-ODR “Tells All” About the NLSS Mechanics of Randomness
