Self-regulatory organizations (SROs) are non-governmental bodies that enforce fair, ethical, and efficient practices in the securities and commodity futures industries, including all national securities and commodities exchanges and the Financial Industry Regulatory Authority (FINRA). FINRA was created in 2007 through a merger of the enforcement arms of the former New York Stock Exchange and the National Association of Securities Dealers. FINRA oversees operations of broker-dealers and dispute resolution procedures involving securities, FINRA rules are developed with SEC regulation and are subject to the federal regulatory process.
- from NASDAQ.com and John C. Coffee, Jr. & Hillary A. Sale, Securities Regulations Cases and Materials (12th ed. 2012).
Overview of the Securities Arbitration Process
The Consumer Financial Protection Bureau (CFPB) proposed a new Rule prohibiting use of mandatory arbitration clauses in consumer contracts. However, on Nov. 1, 2017, President Trump signed a joint resolution passed by Congress disapproving the Arbitration Agreements Rule under the Congressional Review Act (CRA). Pursuant to the joint resolution, the Arbitration Agreements Rule has no force or effect and has been removed from the Code of Federal Regulations.
Jill Gross, The Historical Basis of Securities Arbitration as an Investor Protection Mechanism, J. Disp. Resol.171 ((February 7, 2016) (available at SSRN).
Jason R. Doss, The Practitioner's Guide to Securities Arbitration (ABA 2013) ( KF1070.5 .D67).
Seth E. Lipner & Joseph C. Long, Securities Arbitration Desk Reference (available on Westlaw).