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NYSE Regulation, Inc. announced today that the Board of Directors of NYSE Regulation approved a proposal which provides that all arbitration claims up to $200,000 be decided by a single public arbitrator. The rule proposal will be filed with the U.S. Securities and Exchange Commission for final approval.
The appointment of a single, public arbitrator in cases under $200,000 will provide investors with faster processing and a more timely decision,” said Daniel Beyda, chief administrative officer, NYSE Regulation. “The scheduling of hearings will also become much simpler.” The reduced costs associated with the appointment of a single arbitrator will result in reduced fees in certain cases.
Under the NYSE’s current Rule 607, claims greater than $25,000 are heard by a panel of three arbitrators — two public arbitrators and one with ties to the securities industry. Under the proposal, only claims greater than $200,000 would be heard by three arbitrators.
Brokerage-firm customers participating in NYSE Regulation dispute-resolution proceedings can elect to have arbitrators chosen through a random, computerized selection process or by the traditional selection method whereby arbitrators are appointed by NYSE Arbitration department staff.
NYSE Regulation, Inc., is a not-for-profit corporation dedicated to strengthening market integrity and investor protection. A subsidiary of NYSE Group, Inc., NYSE Regulation’s board of directors is comprised of a majority of directors unaffiliated with any other NYSE board. Each director must also be independent from member organizations and listed companies.
