FINRA Dispute Resolution

Dispute Resolution Statistics

Summary Arbitration Statistics December 2011

New Case Filings through December:

2009	2010	2011	2011 vs 2010
7,137	5,680	4,729	-17%

Number of Cases Closed through December:

2009	2010	2011	2011 vs 2010
4,571	6,241	6,099	-2%

Turnaround Time* (in months) through December:

	2009	2010	2011	2011 vs 2010
Overall	11.5	12.7	14.1	11%
Hearing Decisions	14.0	15.0	15.7	5%
Simplified Decisions	6.0	6.3	6.4	2%

* The timing of the arbitration process is heavily influenced by Code of Arbitration Procedures time limits, the parties, and the panel.

Summary Mediation Statistics December 2011

Mediation Cases in Agreement through December:

2009	2010	2011	2011 vs 2010
563	823	659	-20%

Mediation Cases Closed through December:

	2009	2010	2011	2011 vs 2010
Cases Closed	684	954	783	-18%
Percent Settled	82%	81%	80%

Turnaround Time (in Days) through December:

2009	2010	2011	2011 vs 2010
91	99	98	-1%

Arbitration Cases Filed

Year	Cases
1996	5,631
1997	5,997
1998	4,938
1999	5,608
2000	5,558
2001	6,915
2002	7,704
2003	8,945

Year	Cases
2004	8,201
2005	6,074
2006	4,614
2007	3,238
2008	4,982
2009	7,137
2010	5,680
Through Dec. 2011	4,729

Yearly Volume Comparison Chart

Arbitration Cases Served by Controversy Involved

Type of Controversy*	2007	2008	2009	2010	December 2011
Margin Calls	45	64	128	83	80
Churning	133	212	306	270	236
Unauthorized Trading	174	248	478	397	288
Failure to Supervise	830	1,029	2,691	2,372	2,007
Negligence	891	1,602	3,405	2,698	2,249
Omission of Facts	275	1,201	2,453	1,941	1,603
Breach of Contract	953	1,658	2,802	2,184	1,904
Breach of Fiduciary Duty	1,616	2,836	4,206	3,162	2,589
Unsuitability	695	1,181	2,473	1,974	1,619
Misrepresentation	739	2,005	3,408	2,601	2,102
Online Trading	1	3	0	0	0

*Each case can be coded to contain multiple controversy types. Therefore the columns in this table cannot be totaled to determine the number of cases served in a year.

Security Types Involved in Arbitration Cases

Type of Security*	2007	2008	2009	2010	December 2011
Corporate Bonds	71	163	373	239	179
Certificates of Deposit	16	31	71	41	31
Mutual Funds	395	1,069	1,556	863	652
Options	110	149	275	161	161
Common Stock	790	773	1,367	862	838
Limited Partnerships	19	33	73	80	104
Annuities	243	236	300	208	172
Preferred Stock	26	115	481	232	197
Variable Annuities**		47	300	279	212
Derivative Securities**		801	607	228	54
Auction Rate Securities**		299	276	149	80

*Each case can be coded to contain multiple security types. Therefore the columns in this table cannot be totaled to determine the number of cases served in a year.
**Tracking of these statistics began on January 1, 2008.

Arbitration Cases Closed by Year

Year	Cases
1996	6,331
1997	5,880
1998	5,484
1999	4,767
2000	5,473
2001	5,582
2002	5,957
2003	7,278

Year	Cases
2004	9,209
2005	9,043
2006	7,212
2007	5,345
2008	3,757
2009	4,571
2010	6,241
Through Dec. 2011	6,099

How Arbitration Cases Close

Cases Decided by Arbitrators	2007	% of Cases	2008	% of Cases	2009	% of Cases	2010	% of Cases	Dec. 2011	% of Cases
After Hearing	986	19%	721	19%	839	18%	1,143	19%	1,065	18%
After Review of Documents	147	3%	176	5%	310	7%	258	4%	211	3%
Total	1,133	21%	897	24%	1,149	25%	1,401	23%	1,276	21%

Cases Resolved by Other Means	2007	% of Cases	2008	% of Cases	2009	% of Cases	2010	% of Cases	Dec. 2011	% of Cases
Direct Settlement by Parties	3,008	57%	1,779	47%	2,170	47%	3,139	51%	2,998	50%
Settled Via Mediation	476	9%	384	10%	322	7%	590	10%	594	10%
Withdrawn	370	7%	421	11%	598	13%	621	10%	708	12%
All Others*	331	6%	279	7%	358	8%	377	6%	464	8%
Total	4,185	79%	2,863	76%	3,448	75%	4,727	77%	4,764	79%

*All Other reasons for closed includes cases closed by: Stipulated Award, Bankruptcy of Critical Party; Uncured Deficient Claim; Forum Denied; Stayed by Court Action, etc. Note cases counted as closed in this report do not include those cases that closed and were then reopened.

Results of Customer Claimant Arbitration Award Cases

Year Decided	All Customer Claimant Cases Decided (Hearings & Paper)	Percentage Decided of All Customer Claimant Cases Closed	Percentage (and Number) of Cases Where Customer Awarded Damages*
2006	1,011	19%	42% (425 cases)
2007	671	18%	37% (245 cases)
2008	474	20%	42% (199cases)
2009	669	21%	45% (304cases)
2010**	882	20%	47% (415 cases)
2011	670	16%	44% (297 cases)

* Percentage of customer claimant award cases reflects only instances in which investors as claimants recovered monetary damages or non-monetary relief.

** In 2010, approximately 76 percent of customer claimant cases resulted, through settlements or awards, in monetary or non-monetary recovery for the investor.

Arbitrators by Type

This report lists all available arbitrators by Non-Public and Public Type.

Arbitrator Type	Total
Public	3,552
Non-Public	2,903
Total	6,455

Last Updated: 1/27/2012