Written by D. Daxton White• February 8, 2012• 4:20 pm• Blog, Securities Fraud Articles

FINRA Arbitration Award Statistics

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.

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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%

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