November 20, 2000

The Honorable David M. Walker
Comptroller General
U.S. General Accounting Office
441 G Street, N.W.
Washington, D.C. 20548

The Honorable Arthur Levitt, Jr.
Chairman
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Ms. Linda D. Fienberg
President
NASD Dispute Resolution, Inc.
1735 K Street, N.W.
Washington, D.C. 20006

Dear Mr. Walker, Chairman Levitt, and Ms. Fienberg:

I am writing to acknowledge receipt of the November 9, 2000, U.S. General Accounting Office (GAO) letter report, Procedures for Updating Arbitrator Disclosure Information.

I am heartened by NASD-DR’s undertakings, among other things, to centralize responsibility for updating and revising arbitrator records, to create a simple and user-friendly format to allow arbitrators to update their records online, and to provide a Web-based gateway for parties, counsel, arbitrators, and staff to access records in NASD-DR’s system. Arbitrator disclosure forms also will be circulated among arbitration panel members as a check on the system and to give arbitrators a better understanding of the expertise and background of the people with whom they are serving. I also appreciate SEC’s commitment to monitor the implementation of the reforms as part of its routine inspection cycle.

In order to ensure that all of these steps are indeed taken and that the proposed changes have the desired effects, I respectfully request that the SEC and NASD-DR submit a followup report a year from now on the status and effectiveness of the proposed reforms and an evaluation of any conditions and circumstances that may indicate the necessity or desirability of further changes.

Thank you for your cooperation and attention to this matter.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER