The Law of the Financial Markets from Top Securities Lawyers
Wednesday, January 7, 2026
Securities arbitration refers to the alternative dispute resolution process to resolve claims between broker firms and their customers and employees. FINRA operates the largest arbitration forum in the United States for the resolution of these disputes.
While no one can be forced to give up their rights to a trial in court, virtually all agreements between investors and their stockbrokers include mandatory arbitration agreements, and every registered stockbroker is required to arbitrate their disputes with their customers and firms.
Our site has been providing information regarding securities arbitration since 1995, starting with Overview of the Securities Arbitration Process. We update the site on a regular basis and invite you to explore our commentary and links and to ask questions.
Prefer to talk by phone? Call Mark Astarita at 212-509-6544 with any questions regarding securities law, enforcement and arbitration.
Panel awards Fidelity Brokerage Full Damages on Mistaken ACAT Transfer FIDELITY BROKERAGE SERVICES, INC. v. LaVALLIE, NASD ID # 99-03918 (New York, 8/22/03). A customer who wrongly retained an over delivery of securities is held liable for the consequences, in spite of the broker-dealer’s error. Fidelity made a mistake when […]
Poweragent, Inc. vs. Electronic Data Systems Corp. Objections to jurisdiction may be generally decided by the courts, but once the arbitrators rule, the authority cannot be challenged. POWERAGENT, INC. v. ELECTRONIC DATA SYSTEMS CORP., No. 02-17022 (9th Cir., 2/25/04). Objections to arbitral jurisdiction, i.e., arbitrability issues, may be generally decided […]
Dingell and Markey Comments on GAO Report Urge Changes in Employment Arbitration Mandatory Arbitration Criticized; Arbitrator Qualifications and Ratings Questioned In a letter to SEC Chairman William H. Donaldson and to the two SRO arbitration forums, Congressmen John D. Dingell (D-MI) and Edward J. Markey (D-MA) offer their perspectives on […]
Claims up, but the increase is from industry, not customers NYSE STATS, 3/03: The New York Stock Exchange has maintained a small lead over the pace of new filings thus far this year, but filings are declining in the customer-related category. New claims filed during the first quarter of 2003 […]
Reed vs. Mutual Service Corp – California – 2003 Reed v. Mutual Service Corp., 2003 Cal. App. LEXIS 395 (Cal. App., 2Dist., 2/21/03). Award Challenge * Confirmation of Award * Exceeding Powers * Arbitrator Bias/Evident Partiality * Timeliness Issues (Eligibility) * Waiver * Arbitrator Authority, Scope of * Res Judicata […]
The Securities and Exchange Commission has invited public comment on a rule proposal from NASD Dispute Resolution that would institute default arbitration procedures for non-responding defunct firms and terminated personnel. When the General Accounting Office disclosed in June 2000 (SAA 00-26) that many winning Claimants in arbitration do not […]
NASD Rule Change on REplacement Arbitrators Vacancies to be filled immediately, without a request from the parties. NASD RULE CHANGE ON REPLACEMENT ARBITRATORS Under a Rule proposal filed with the SEC last week, vacancies on Panels will be filled right away, without waiting for the parties to request a replacement […]
Limited Grounds Exist for Compelling Non-Signatory to Arbitrate MAG Portfolio Consult, GmBH vs. Merlin Biomed Advisors, LLC, No. 00-9502 (2d Cir., 10/10/01) This is a securities dispute between two former partners in investment advisory firms (the old Merlins) which received management fees from health care investment funds. When Plaintiff relinquished […]
To Compel Arbitration, Must Prove Knowing Acceptance of the Agreement This time, merely proving that the agreement was signed was not enough. Braga v. VMR Capital Markets, No. B144584 (Cal. App., 2Dist., 2/13/02). Arbitration Agreement * Contractual Issues (Mutual Assent) * Waiver * State Law, Applicability of * FAA (Section2). […]
Arbitration Panel Orders Return of Settlement Payment, and Awards Nothing. WEINBERG v. BEAR STEARNS & CO., INC., NYSE ID #2000-008216 (Los Angeles, 10/18/00): Recently confirmed, this Award presents an unusual outcome in a “two-bites-of-the-apple” scenario. According to the “Case Summary” section of the Award, Israel and Molly Weinberg entered into […]
