NASD Arbitration Statistics January 2004 – SECLaw.com

   

]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives NASD Arbitration Stats: January ’04
Number of filings down, and slowing

NASD STATS, 1/04:

Although the surge in new case filings at NASD has continued for more than two years, 2003 ended weakly and 2004 has commenced in similar fashion. In fact, the 576 submissions recorded in January was the lowest number of filings recorded in any given month since September 2001.

Close-outs in January actually exceeded the number of new filings, a reversal from the norm, and the close-out tally of 717 was higher than the norm, too. NASD has been making in-roads in the rate of growth of its hefty and aging docket; in the past six months, it has been running at a close-out rate that exceeds 8,000 cases on an annualized basis, whereas in 2002 the final tally was 5,957. This has helped improve average turnaround time among the Simplified Decisions and keep it relatively steady in the Hearing Decisions category (17.2 mos. in January vs. 16.7 mos. for 2000).

However, settlements appear to be happening later in the process, as the overall turnaround time, which includes settlements plus cases tried to conclusion, has risen 23% in two years (15.0 mos. from 12.2 mos. since January 2002).

What might be causing that change? Directly negotiated settlements did comprise 46% of the closed cases in January 2004 (versus 36% for 2002), so direct settlements appear to be at the heart of the rising turnaround figure. On the other hand, the general trend in recent years has favored more settlements by mediation and decisions after hearing, with slightly less reliance on direct settlements.

Whatever the ultimate cause, it appears that case dynamics, as opposed to case administration, holds the answer.

  

]]>


Shop at Amazon.com

 


Copyright 2004 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to help@sacarbitration.com. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com


Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article. 


Return to The Securities Law Home Page 

Visit Beam & Astarita, LLC, securities arbitration, regulation and litigation attorneys

]]> ]]>

Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | mja@sallahlaw.com | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.