The Claimant initiates the arbitration proceeding by filing the Statement of Claim and Uniform Submission Agreement. The Statement of Claim should be in narrative form, setting forth in a clear and concise manner, all relevant facts. Important documents which verify the allegations of the Statement of Claim should be attached. In a simplified arbitration matter, the Statement of Claim may represent the Claimant's only opportunity to tell his story and make his case. Hearings in simplified cases are extremely rare, and although a Claimant may reply to Respondent's Answer, the case is won or lost based upon the Statement of Claim.

Together with the Statement of Claim, the Claimant will file an Information Statement and a Uniform Submission Agreement. Arbitration is a voluntary procedure and both Claimant and Respondent must certify that they are willing to submit to the arbitration.

The SRO at which the Statement of Claim is filed will arrange for service of the claim upon the Respondents. Service upon a brokerage house will generally be to its general counsel or an individual previously designated for receipt of service. Individual respondents are served at addresses provided by the Claimant.

The Respondent's Answer is due twenty business days after receipt. Respondents may seek an extension of time within which to answer from the Director of Arbitration. Answers should be complete and specific and should set forth all available defenses. Cross-Claims, Counterclaims and Third Party Claims are permitted in arbitration and must be submitted with the Answer. The responding party will be required to respond to the Cross-Claim, Counterclaim or Third Party Claim within ten business days of receipt.

Simplified arbitrations may be heard by a single arbitrator selected by the SRO. Prior to sending the documents on file to the arbitrator, the parties will be presented with the name and background information of the selected arbitrators. The SROs will have predetermined conflicts and will usually have eliminated any arbitrator who may have a conflict prior to giving notice of appointment to the parties. Nevertheless, any panel member may be stricken for cause at any time. Each side shall have one peremptory challenge, meaning that all Respondents, as a unit, have one challenge if there is more than one Respondent. Timing is important, since a party wishing to exercise a peremptory strike must do so notifying the Director of Arbitration in writing within five business days of notification of the identity of the arbitrator appointed. The period of time within which to strike an arbitrator may be extended by a party's request to review the arbitrator's previous awards, if any, within the five day period. Reviewing prior awards may provide parties with the opportunity to observe how the arbitrator has ruled on similar issues in the past.

In a simplified arbitration proceeding, there is rarely a hearing although an arbitrator may call for a hearing if he or she is unable to reach a decision based upon the documents. In most cases, the matter is determined based upon the documents filed. No contact is permitted between the parties and the arbitrator. Any supplemental documents to be filed must be provided to the arbitrator through the SRO. After the final selection of the arbitrator, the SRO will forward to him or her all of the appropriate documents. The arbitrator will review all of the documents and render a decision.

The arbitrator will advise the SRO of the decision and the SRO staff will prepare the award and forward it to the arbitrator(s) for signature. Once the SRO receives the signed award, it will be forwarded to the parties. The award will not be made available to any party until received by a party from the SRO.