This Comment will discuss the present forums available for customer-broker arbitration disputes, the problems arising in the current system, what changes in the present system may help resolve these problems, and the desirability of creating a new forum to handle all securities arbitrations between customers and brokers. This Comment will not challenge the desirability of arbitrating customer-broker disputes in general. Indeed, many scholars and commentators argue that arbitration is beneficial to both the customer and the broker because it provides a more efficient and less expensive means of settling disputes than litigation. However, for arbitration to effectively handle customer grievances, it is not merely enough that the process be fair, but the customer must perceive it to be fair. But first, a brief overview of the legal history of securities arbitration would be helpful.
Christopher J. Moeller,
Your Forum or Mine - Where to Arbitrate Investor-Broker Securities Claims,
1991 J. Disp. Resol.
Available at: https://scholarship.law.missouri.edu/jdr/vol1991/iss1/6