7.6.2. NFA Dispute Arbitration Procedures
Besides initiating its own disciplinary actions, the NFA also arbitrates member disputes with customers and with other members. Arbitration is a process by which the parties to a dispute submit their arguments to a neutral third party (the arbitrator) without proceeding to a court action. If both sides agree to be bound by the arbitrator’s decision, it is a binding arbitration.
Arbitration is generally faster and less expensive than other procedures, such as the courts. Hearings are informal and don’t require a lawyer. Once the parties have filed a claim, however, the dispute can only be resolved through the arbitration proceeding. NFA arbitration decisions are binding and enforceable in any