February 8, 2012 Comments (0) Blog, Securities Fraud

FINRA Arbitration Award Statistics

(Last Updated On: July 17, 2015)

FINRA recently updated detailed statistics on its arbitration, mediation, and dispute resolution process.  This information is publicly available on FINRA’s website at www.finra.org and is being provided by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

Summary Arbitration Statistics December 2011

 

New Case Filings through December:
2009 2010 2011 2011 vs 2010
7,137 5,680 4,729 -17%
Number of Cases Closed through December:
2009 2010 2011 2011 vs 2010
4,571 6,241 6,099 -2%
Turnaround Time* (in months) through December:
2009 2010 2011 2011 vs 2010
Overall 11.5 12.7 14.1 11%
Hearing Decisions 14.0 15.0 15.7 5%
Simplified Decisions 6.0 6.3 6.4 2%
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 2011

 

Mediation Cases in Agreement through December:
2009 2010 2011 2011 vs 2010
563 823 659 -20%
Mediation Cases Closed through December:
2009 2010 2011 2011 vs 2010
Cases Closed 684 954 783 -18%
Percent Settled 82% 81% 80%
Turnaround Time (in Days) through December:
2009 2010 2011 2011 vs 2010
91 99 98 -1%

Yearly Volume Comparison Chart


 

Arbitration Cases Served by Controversy Involved

 

Type of Controversy* 2007 2008 2009 2010 December 2011
Margin Calls 45 64 128 83 80
Churning 133 212 306 270 236
Unauthorized Trading 174 248 478 397 288
Failure to Supervise 830 1,029 2,691 2,372 2,007
Negligence 891 1,602 3,405 2,698 2,249
Omission of Facts 275 1,201 2,453 1,941 1,603
Breach of Contract 953 1,658 2,802 2,184 1,904
Breach of Fiduciary Duty 1,616 2,836 4,206 3,162 2,589
Unsuitability 695 1,181 2,473 1,974 1,619
Misrepresentation 739 2,005 3,408 2,601 2,102
Online Trading 1 3 0 0 0

*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 Security* 2007 2008 2009 2010 December 2011
Corporate Bonds 71 163 373 239 179
Certificates of Deposit 16 31 71 41 31
Mutual Funds 395 1,069 1,556 863 652
Options 110 149 275 161 161
Common Stock 790 773 1,367 862 838
Limited Partnerships 19 33 73 80 104
Annuities 243 236 300 208 172
Preferred Stock 26 115 481 232 197
Variable Annuities** 47 300 279 212
Derivative Securities** 801 607 228 54
Auction Rate Securities** 299 276 149 80
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