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Stewart,
My new broker did not question my not signing the consent to arbitration
form. It appears to optional. I never tohought about it until now. I
thought arbitration would be fair. I can't say that I feel that way
now. I will not sign one again.
There is a consent to jurisdiction that from what I could see had to be
signed. That seems fair.
Regards,
Tom
Stewart Taylor wrote:
>
> 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.
<snip>
>
> 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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