NASDAQ SECURITIES ARBITRATION PROCESS
Background:
The NASDAQ securities arbitration process is a dispute resolution process. It is an alternative arrangement from the traditional court matters. The participants in an arbitration process have their disputes resolved by people, who are impartial and are also knowledgeable in the concerned areas of dispute. These people are called arbitrators. After the United States of Americas, Supreme Court decision in the year 1987, arbitration became the sought after method of solving disputes from the industry of securities. NASDAQ uses the arbitration process for solving the disputes between the dealers and brokers, because this process is very prompt in nature and is also, very inexpensive. The arbitration process is governed by certain laws that are formed by both the state as well as the federal government of the United States of America.
Arbitration Duty:
In the NASDAQ securities industry or any other securities industry, a party is not compelled to go for the arbitration process unless it has bounded itself for doing so. The registered firms and their representatives are bound by a contract to arbitrate their disputes regarding the clients, even if there is no written contract between them. The sections 12, 8 and 1 of the NASDAQ code of arbitration process says that, the associated persons and the members of the NASDAQ, have to be arbitrated on the demand of the clients or any other firm, which is also a member of the NASDAQ. A broker is bounded by law to arbitrate the disputes with his clients. |
