“This is a major step forward for public investors because it gives them the choice in how arbitrators are selected for their cases. We are always seeking ways to improve our forum for dispute resolution. We expect that this enhancement will be a welcome addition,” said Daniel Beyda, NYSE Regulation chief administrative officer.
Under this method, arbitrators will be chosen using random list selection if the customer or party that is not an Exchange member requests it in writing within 45 days from the time the statement of claim is filed.
Customers may also opt for the traditional selection method whereby arbitrators are appointed by NYSE Arbitration department staff. The NYSE will continue to accommodate any reasonable alternative method to select arbitrators, provided the parties agree.
About NYSE Regulation
On December 17, 2003, the SEC approved a new governance structure for the NYSE. Under the new design, the NYSE Board of Directors is comprised solely of independent directors, except for the chief executive officer, who have no affiliation with any regulated member firm. A new position of chief regulatory officer was created and reports directly to the board of directors through a new Regulatory Oversight Committee. As a result, NYSE Regulation is insulated from potential influence from NYSE members and member firms, operates separately from the business side and is independent in its decision-making.
NYSE Regulation plays a critical role in monitoring and regulating the activities of its members, member firms and listed companies, as well as enforcing compliance with NYSE rules and federal securities laws. Nearly 400 of the largest securities firms in America are members of the New York Stock Exchange. These firms service 98 million customer accounts, or 84 percent of the total public customer accounts handled by broker-dealers, with total assets of over $4 trillion. They operate from 20,000 branch offices around the world and employ 144,000 registered personnel.
Over 700 employees, or more than 40 percent of the Exchange’s staff, work for NYSE Regulation, which consists of four divisions: Market Surveillance, Member Firm Regulation, Enforcement and Listed Company Compliance, as well as the Risk Assessment Unit and Dispute Resolution/Arbitration.
