2012 Dispute Resolution Statistics

Summary Arbitration Statistics December 2012

New Case Filings through December:

2010	5,680
2011	4,729
2012	4,299
2012 vs 2011	-9%

Number of Cases Closed through December:

2010	6,241
2011	6,099
2012	4,877
2012 vs 2011	-20%

Turnaround Time¹ (in months) through December:

Year	Overall	Hearing Decisions	Simplified Decisions
2010	12.7	15.0	6.3
2011	14.1	15.7	6.4
2012	14.4	16.6	7.1
2012 vs 2011	2%	6%	11%

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 2012

Mediation Cases in Agreement through December:

2010	823
2011	659
2012	572
2012 vs 2011	-13%

Mediation Cases Closed through December:

Year	Cases Closed	Percent Settled
2010	954	81%
2011	783	80%
2012	776	79%
2012 vs 2011	-1%

Turnaround Time (in Days) through December:

2010	99
2011	98
2012	100
2012 vs 2011	2%

 

Arbitration Cases Filed

Year	Cases
1997	5,997
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

 

Arbitration Cases Served by Controversy Involved

Type of Controversy1	2008	2009	2010	2011	2012
Margin Calls	64	128	83	80	68
Churning	212	306	270	236	245
Unauthorized Trading	248	478	397	288	313
Failure to Supervise	1,029	2,691	2,372	2,007	1,657
Negligence	1,602	3,405	2,698	2,249	1,941
Omission of Facts	1,201	2,453	1,941	1,603	1,355
Breach of Contract	1,658	2,802	2,184	1,904	1,573
Breach of Fiduciary Duty	2,836	4,206	3,162	2,589	2,216
Unsuitability	1,181	2,473	1,974	1,619	1,354
Misrepresentation	2,005	3,408	2,601	2,102	1,769

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	2008	2009	2010	2011	2012
Corporate Bonds	163	373	239	179	124
Certificates of Deposit	31	71	41	31	31
Mutual Funds	1,069	1,556	863	652	392
Options	149	275	161	161	151
Common Stock	773	1,367	862	838	736
Limited Partnerships	33	73	80	104	70
Annuities	236	300	208	172	147
Preferred Stock	115	481	232	197	112
Variable Annuities	47	123	279	212	220
Derivative Securities	801	607	228	54	8
Auction Rate Securities	299	276	149	80	58

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
1997	5,880
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

How Arbitration Cases Close

Cases Decided by Arbitrators	2008 (% of Cases)	2009 (% of Cases)	2010 (% of Cases)	2011 (% of Cases)	2012 (% of Cases)
After Hearing	721 (19%)	839 (18%)	1,143 (19%)	1,065 (18%)	895 (19%)
After Review of Documents	176 (5%)	310 (7%)	258 (4%)	211 (3%)	182 (4%)
Total	897 (24%)	1,149 (25%)	1,401 (23%)	1,276 (21%)	1,077 (22%)

Cases Resolved by Other Means	2008 (% of Cases)	2009 (% of Cases)	2010 (% of Cases)	2011 (% of Cases)	2012 (% of Cases)
Direct Settlement by Parties	1,779 (47%)	2,170 (47%)	3,139 (51%)	2,998 (50%)	2,414 (50%)
Settled Via Mediation	384 (10%)	322 (7%)	590 (10%)	594 (10%)	502 (10%)
Withdrawn	421 (11%)	598 (13%)	621 (10%)	708 (12%)	428 (9%)
All Others1	279 (7%)	358 (8%)	377 (6%)	464 (8%)	394 (8%)
Total	2,863 (76%)	3,448 (75%)	4,727 (77%)	4,764 (79%)	3,738 (78%)

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
2007	671	18%	37% (245 cases)
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)

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

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)

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	3,589
Non-Public	2,870
Total	6,459