BrokerCustomer Arbitration: An Attractive Alternative to Litigation

As docket congestion continues to increase the time and expense of litigating commodity futures disputes in federal and state courts, arbitration has become the forum of choice for many brokers and their customers. Amendments to the Commodity Exchange Act (CEA) and promulgation of various administrative rules indicate that Congress and the Commodity Futures Trading Commission (CFTC) sanction arbitration of broker--customer disputes. Claimants can choose from several arbitration forums, including those conducted under the auspices of the National Futures Association (NFA), contract markets, and the New York Stock Exchange.