Dispute Resolution Statistics

Summary Arbitration Statistics June 2015

New Case Filings through June:

2013 1,897
2014 2,040
2015 1,527
2015 vs 2014 -25%

Number of Cases Closed through June:

2013 2,352
2014 1,925
2015 1,813
2015 vs 2014 -6%

Turnaround Time1 (in months) through June:

  Overall Hearing Decisions Simplified Decisions
2013 14.4 17.5 7.7
2014 15.1 18.7 8.2
2015 14.4 17.2 8.4
2015 vs 2014 -5% -8% 2%

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

Summary Mediation Statistics June 2015

Mediation Cases in Agreement through June:

2013 249
2014 223
2015 250
2015 vs 2014 12%

Mediation Cases Closed through June:

  Cases Closed Percent Settled
2013 283 78%
2014 287 82%
2015 243 82%
2015 vs 2014 -15%  

Turnaround Time (in Days) through June:

2013 85
2014 95
2015 79
2015 vs 2014 -17%

Arbitration Cases Filed

Year Cases
2000 5,558
2001 6,915
2002 7,704
2003 8,945
2004 8,201
2005 6,074
2006 4,614
2007 3,238
2008 4,982
2009 7,137
2010 5,680
2011 4,729
2012 4,299
2013 3,714
2014 3,822
Through June 2015 1,527

Yearly Volume Comparison Chart

Arbitration Cases Served by Controversy Involved

Type of Controversy1 2011 2012 2013 2014 June 2015
Margin Calls 80 68 55 83 46
Churning 236 245 238 212 120
Unauthorized Trading 288 313 260 242 124
Failure to Supervise 2,007 1,657 1,480 1,742 665
Negligence 2,249 1,941 1,715 1,993 748
Omission of Facts 1,603 1,355 1,243 1,394 515
Breach of Contract 1,904 1,573 1,418 1,779 621
Breach of Fiduciary Duty 2,589 2,216 1,873 2,106 776
Unsuitability 1,619 1,354 1,243 1,396 534
Misrepresentation 2,102 1,769 1,527 1,619 634

1 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 Security1 2011 2012 2013 2014 June 2015
Corporate Bonds 179 124 92 70 35
Certificates of Deposit 31 31 38 39 14
Mutual Funds 652 392 308 378 107
Options 161 151 115 149 67
Common Stock 838 736 561 599 256
Limited Partnerships 104 70 84 86 43
Annuities 172 147 120 113 42
Preferred Stock 197 112 90 47 18
Variable Annuities 212 220 174 120 60
Derivative Securities 54 8 0 0 0
Auction Rate Securities 80 58 31 35 1

1 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.

Arbitration Cases Closed by Year

Year Cases
2000 5,473
2001 5,582
2002 5,957
2003 7,278
2004 9,209
2005 9,043
2006 7,212
2007 5,345
2008 3,757
2009 4,571
2010 6,241
2011 6,099
2012 4,877
2013 4,498
2014 3,838
Through June 2015 1,813

How Arbitration Cases Close

Cases Decided by Arbitrators 2011 (% of Cases) 2012 (% of Cases) 2013 (% of Cases) 2014 (% of Cases) June 2015 (% of Cases)
After Hearing 1,065 (18%) 895 (19%) 792 (18%) 683 (18%) 348 (19%)
After Review of Documents 211 (3%) 182 (4%) 236 (5%) 208 (5%) 113 (6%)
Total 1,276 (21%) 1,077 (22%) 1,028 (23%) 891 (23%) 461 (26%)
Cases Resolved by Other Means 2011 (% of Cases) 2012 (% of Cases) 2013 (% of Cases) 2014 (% of Cases) June 2015 (% of Cases)
Direct Settlement by Parties 2,998 (55%) 2,414 (50%) 2,336 (52%) 1,942 (51%) 873 (48%)
Settled Via Mediation 594 (10%) 502 (10%) 315 (7%) 329 (9%) 139 (8%)
Withdrawn 708 (12%) 428 (9%) 482 (11%) 358 (9%) 182 (10%)
All Others1 464 (8%) 394 (8%) 297 (7%) 290 (8%) 148 (8%)
Total 4,764 (79%) 3,738 (78%) 3,430 (77%) 2,919 (77%) 1,342 (74%)

1 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 Damages1
2010 882 20% 47% (415 cases)
2011 670 16% 44% (297 cases)
2012 570 18% 45% (255 cases)
20132 499 18% 42% (212 cases)
2014 465 19% 38% (177 cases)
2015 264 22% 39% (102 cases)

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

2 In 2013, approximately 77 percent of customer claimant cases resulted, through settlements or awards, in monetary or non-monetary recovery for the investor.

Comparison of Results of All-Public Panels and Majority Public Panels in Customer Claimant Cases

Year Decided1 Cases Decided by All-Public Panels2 Percentage (and Number) of Cases Decided by 3 Public Arbitrators Where Customer Awarded Damages Cases Decided by Majority-Public Panels3 Percentage (and Number) of Cases Decided by 2 Public Arbitrators and 1 Non-Public Arbitrator Where Customer Awarded Damages
2011 13 54% (7 cases) 17 18% (3 cases)
2012 99 49% (49 cases) 111 33% (37 cases)
2013 128 43% (55 cases) 107 44% (47 cases)
2014 135 44% (59 cases) 104 38% (39 cases)
2015 92 49% (45 cases) 41 34% (14 cases)

1 An all-public option for arbitration panels was implemented on Feb 1, 2011. Statistics reflect cases heard with awards from that point forward.

2 Three public arbitrators.

3 Two public arbitrators and one non-public arbitrator.

Arbitrators by Type

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

Arbitrator Type Total
Public 2,825
Non-Public 3,497
Total 6,322