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I have had many institutional accounts refuse to sign the standard
arbitration agreement. In almost every case the corporate credit and
compliance depts. went along with it.
After I found out that the firms didn't really fight to hard over the arb.
agreement I began to always advise my new clients not to wave their rights
to a trial or outside arbitration settlement.
I don't recall ever having opened an individual account (but I have never
had more than a very few of these) that wasn't required to sign the
arbitration agreement.
Luckily, I have never had an account that needed arbitration. But then
again, when I was in that business I was always trading size and always
kept exact track of my customers orders, what they were trying to do, what
was going on in the pit, and so on. I always felt like it was my job to
stay on top of it for my accounts. Frankly, institutional guys demand that
kind of help from their brokers.
Anyway, I suspect that there are many firms that will wave the arbitration
agreement if you fight hard enough with them and are trading actively
enough to justify them taking the risk. For small traders.... If I were
the firm and evaluating, I would have to think long and hard about waving
arbitration for small accounts (why give a sucker an even break?). The
expense of one trip to court will offsets many, many, many years of
commissions generated by a one or two lot trader.
Good trading today,
Stewart....
Stewart Taylor
Taylor Fixed Income Outlook
Voice: 501-219-9774
Fax: 501-228-0963
E-Mail: staylor@xxxxxxx
Web Site: http://www.cei.net/~staylor/
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