January 20, 2015 Practice Points

Arbitration Claims Down at National Futures Association

By Mitchell Marinello

Statistics published by the National Futures Association (NFA), the industry-wide, self-regulatory organization for the U.S. futures industry, show that the total number of arbitration claims it has received from members and customers are sharply down over the past five years.

The following chart shows the number of Claims filed with the NFA since 2010:

Calendar Year

Customer

Member

Total

2014

21

8

29

2013

43

5

48

2012

71

10

81

2011

79

9

88

2010

126

12

138

(N.B. Customer cases are cases where at least one party is a public customer; member cases are primarily cases between and among NFA members and associates.)

The following chart shows the reason that NFA cases were closed in each year since 2010:

Percentage of Closed Cases by Reason


Calendar Year

Hearings

Settlements

Other

2014

22%

48%

30%

2013

25%

38%

37%

2012

21%

33%

46%

2011

42%

28%

30%

2010

28%

37%

35%

 (N.B. “Other” cases are cases that are rejected, withdrawn, or terminated for other reasons such as bankruptcy.)

Keywords: alternative dispute resolution, litigation, National Futures Association, NFA, number of arbitration cases

Mitchell L. Marinello is with Novack and Macey LLP in Chicago, Illinois.


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