Farrand v. Lutheran Brotherhood

Per Curiam. Our opinion holds that the rules of the National Association of Securities Dealers do not provide for arbitration of employment disputes. Although we acknowledged that the language of the NASDs rules could be stretched to cover such disputes, we concluded that this was not the most natural reading and added: "Neither the SEC nor the NASD has published an interpretation of this language. The NASD adopted its Code of Arbitration Procedure in 1968, when the rules of such organizations did not require the SECs approval. Until the 1975 amendments to §§ 15A and 19(b)(1) of the Securities Exchange Act, 15 U.S.C. §§ 78o-3, 78s(b)(1), changes in the NASDs rules became effective unless the SEC objected. The NASD did not have to submit explanations of its rules, and the SEC did not explain why it let them go into force. So there is no paper trail that might assist in interpretation." Slip op. at 4.