How Does the Expungement Process Work under Rule 2130?
Under NASD Rule 2130, a party may seek an expungement order either directly from a court or may ask the arbitrators, who are most familiar with the facts of the case, to order expungement as part of the award. If the arbitrators grant the request, the party must ask a court of competent jurisdiction to confirm the arbitration award. Before NASD will expunge information from a CRD record in these circumstances, the court must confirm the arbitrators’ award. If a party seeks expungement relief in arbitration, the arbitrators will determine whether to grant expungement on the basis of one or more of the standards identified in Rule 2130. Prior to seeking a court order for expungement, the parties must advise NASD of the grounds for expungement. NASD will then determine whether to require the parties to name NASD as a party to the court proceedings so that NASD can oppose the expungement in court, or waive the requirement to be named as a party. What Are the Three Grounds upon which Arbitr
