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