2013 Dispute Resolution Statistics
Summary Arbitration Statistics December 2013
New Case Filings through December:
| 2011 | 4,729 |
|---|---|
| 2012 | 4,299 |
| 2013 | 3,714 |
| 2013 vs 2012 | -14% |
Number of Cases Closed through December:
| 2011 | 6,099 |
|---|---|
| 2012 | 4,877 |
| 2013 | 4,498 |
| 2013 vs 2012 | -8% |
Turnaround Time1 (in months) through December:
| Year | Overall | Hearing Decisions | Simplified Decisions |
|---|---|---|---|
| 2011 | 14.1 | 15.7 | 6.4 |
| 2012 | 14.4 | 16.6 | 7.1 |
| 2013 | 14.3 | 17.2 | 7.3 |
| 2013 vs 2012 | -1% | 4% | 3% |
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 December 2013
Mediation Cases in Agreement through December:
| 2011 | 659 |
|---|---|
| 2012 | 572 |
| 2013 | 482 |
| 2013 vs 2012 | -16% |
Mediation Cases Closed through December:
| Year | Cases Closed | Percent Settled |
|---|---|---|
| 2011 | 783 | 80% |
| 2012 | 776 | 79% |
| 2013 | 558 | 79% |
| 2013 vs 2012 | -28% |
Turnaround Time (in Days) through December:
| 2011 | 98 |
|---|---|
| 2012 | 100 |
| 2013 | 95 |
| 2013 vs 2012 | -5% |
Arbitration Cases Filed
| Year | Cases |
|---|---|
| 1998 | 4,938 |
| 1999 | 5,608 |
| 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 |
Arbitration Cases Served by Controversy Involved
| Type of Controversy1 | 2009 | 2010 | 2011 | 2012 | 2013 |
|---|---|---|---|---|---|
| Margin Calls | 128 | 83 | 80 | 68 | 55 |
| Churning | 306 | 270 | 236 | 245 | 238 |
| Unauthorized Trading | 478 | 397 | 288 | 313 | 260 |
| Failure to Supervise | 2,691 | 2,372 | 2,007 | 1,657 | 1,480 |
| Negligence | 3,405 | 2,698 | 2,249 | 1,941 | 1,715 |
| Omission of Facts | 2,453 | 1,941 | 1,603 | 1,355 | 1,243 |
| Breach of Contract | 2,802 | 2,184 | 1,904 | 1,573 | 1,418 |
| Breach of Fiduciary Duty | 4,206 | 3,162 | 2,589 | 2,216 | 1,873 |
| Unsuitability | 2,473 | 1,974 | 1,619 | 1,354 | 1,243 |
| Misrepresentation | 3,408 | 2,601 | 2,102 | 1,769 | 1,527 |
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 | 2009 | 2010 | 2011 | 2012 | 2013 |
|---|---|---|---|---|---|
| Corporate Bonds | 373 | 239 | 179 | 124 | 92 |
| Certificates of Deposit | 71 | 41 | 31 | 31 | 38 |
| Mutual Funds | 1,556 | 863 | 652 | 392 | 308 |
| Options | 275 | 161 | 161 | 151 | 115 |
| Common Stock | 1,367 | 862 | 838 | 736 | 561 |
| Limited Partnerships | 73 | 80 | 104 | 70 | 84 |
| Annuities | 300 | 208 | 172 | 147 | 120 |
| Preferred Stock | 481 | 232 | 197 | 112 | 90 |
| Variable Annuities | 123 | 279 | 212 | 220 | 174 |
| Derivative Securities | 607 | 228 | 54 | 8 | 0 |
| Auction Rate Securities | 276 | 149 | 80 | 58 | 31 |
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 |
|---|---|
| 1998 | 5,484 |
| 1999 | 4,767 |
| 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 |
How Arbitration Cases Close
| Cases Decided by Arbitrators | 2009 (% of Cases) | 2010 (% of Cases) | 2011 (% of Cases) | 2012 (% of Cases) | 2013 (% of Cases) |
|---|---|---|---|---|---|
| After Hearing | 839 (18%) | 1,143 (19%) | 1,065 (18%) | 895 (19%) | 792 (18%) |
| After Review of Documents | 310 (7%) | 258 (4%) | 211 (3%) | 182 (4%) | 236 (5%) |
| Total | 1,149 (25%) | 1,401 (23%) | 1,276 (21%) | 1,077 (22%) | 1,028 (23%) |
| Cases Resolved by Other Means | 2009 (% of Cases) | 2010 (% of Cases) | 2011 (% of Cases) | 2012 (% of Cases) | 2013 (% of Cases) |
|---|---|---|---|---|---|
| Direct Settlement by Parties | 2,170 (47%) | 3,139 (51%) | 2,998 (50%) | 2,414 (50%) | 2,336 (52%) |
| Settled Via Mediation | 322 (7%) | 590 (10%) | 594 (10%) | 502 (10%) | 315 (7%) |
| Withdrawn | 598 (13%) | 621 (10%) | 708 (12%) | 428 (9%) | 482 (11%) |
| All Others1 | 358 (8%) | 377 (6%) | 464 (8%) | 394 (8%) | 297 (7%) |
| Total | 3,448 (75%) | 4,727 (77%) | 4,764 (79%) | 3,738 (78%) | 3,430 (77%) |
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 |
|---|---|---|---|
| 2008 | 474 | 20% | 42% (199 cases) |
| 2009 | 669 | 21% | 45% (304 cases) |
| 2010 | 882 | 20% | 47% (415 cases) |
| 2011 | 670 | 16% | 44% (297 cases) |
| 2012 | 570 | 18% | 45% (255 cases) |
| 20132 | 499 | 18% | 42% (212 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) |
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 | 3,562 |
| Non-Public | 2,864 |
| Total | 6,426 |