Mayo

ORDER DENYING PLAINTIFF’S MOTION TO VACATE ORDER COMPELLING ARBITRATION AND STAYING PROCEEDINGS

On February 4, 2002, the Court granted the motion of Defendant Morgan Stanley Dean Witter & Co. (“Morgan Stanley”) to compel arbitration and to stay proceedings. After Plaintiff commenced arbitration proceedings before the New York Stock Exchange, Inc. (“NYSE”), the Judicial Council of California promulgated new ethics standards for arbitrators in California. Plaintiff moves to vacate the Court’s February 4, 2002 Order on the ground that the NYSE’s refusal to appoint an arbitration panel that is compliant with the new California ethics standards constitutes an intervening change in circumstances requiring denial of the motion to compel arbitration. Morgan Stanley and Intervenors the NYSE and the National Association of Securities Dealers Dispute Resolution, Inc. (“NASDDR”) oppose the motion. The Court has read the briefing submitted by the parties and has considered the oral arguments of counsel presented on November 25, 2002 and February 10, 2003. For the reasons set forth below, the Court concludes that federal law preempts application of the new California ethics standards to the…