Arbitration in the United States under the Financial Industry Regulatory Authority

Abstract

Particularly in times of economic stress, purchasers of securities in the United States seek redress against brokers and their employers who may have violated the applicable investment and trading rules. An independent organization called the Financial Industry Regulatory Authority (FINRA) operates under the supervision of the Securities and Exchange Commission to take necessary disciplinary actions, as well as to oversee an arbitration system for the resolution of financial industry disputes. This article examines the working of that arbitration system, including the elements that FINRA has introduced, which differ from those usually employed in commercial arbitration. New York Stock Exchange Arbitration Rules (2003), Rule 600 Rodriguez de Quijas v Shearson/American Express , Inc, US Supreme Court (1989) Patrick Murray v Citigroup Global Markets, Inc , US Court of Appeals (6th Cir) (2013) FINRA (Financial Industry Regulatory Authority) Rules (2008), Rules 2010, 2111FINRA (Financial Industry Regulatory Authority) Code of Arbitration Procedure (Customer Code) (as amended 2014)FINRA (Financial Industry Regulatory Authority) Discovery Guide (2013)FINRA (Financial Industry Regulatory Authority) Document Production Lists (2013)