What is securities arbitration?

A: Securities arbitration, an alternative to litigating a case in court, is the process of resolving a dispute between the parties before a panel of arbitrators who are selected through a process agreed to by the parties. An arbitration award is typically final and binding with a limited review available by the courts. Arbitrations are conducted in accordance with the Uniform Code of Arbitration, which was developed by the Securities Industry Conference on Arbitration, and the rules of the organization where the claim is filed.