For more than 125 years, NYSE arbitration has been used to resolve disputes between investors and brokers.  Arbitration is often viewed as a practical alternative to lengthy and expensive litigation.

Arbitration

In June 1987, the United States Supreme Court upheld the arbitration process as a fair, equitable and efficient method for settling disputes in the securities industry.  The NYSE provides neutral arbitration panels to hear and decide disputes in more than 35 cities throughout the United States (in appropriate circumstances a hearing may be held outside the U.S.).  The NYSE maintains rosters of qualified neutral arbitrators and screens potential arbitrators for conflicts before assigning them to a particular case.

The System

• Arbitration enables a dispute to be resolved quickly and fairly by impartial people, known as arbitrators, who are knowledgeable and trained in the art of resolving controversy.
  

• A securities customer has the right to require a stockbroker that works for a NYSE member firm to arbitrate.

• When a customer chooses arbitration to resolve the dispute, he waives the right to pursue the matter in court.

• Arbitration is final and binding.

• Pre-arbitration discovery is generally more limited than court discovery.

• The arbitrators’ award is not required to include factual findings or legal reasoning.

• The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.

For more information check on "Filing a Claim."