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>From: CRLeBeau@xxxxxxx
>Date: Thu, 17 Sep 1998 19:21:03 EDT
>To: lincolnf@xxxxxxxxxxxxx, TDBRUN@xxxxxxxxxxxxxxxx
>Cc: staylor@xxxxxxx, omega-list@xxxxxxxxxx
>Subject: Re: CME ARB
>
>
>In a message dated 9/17/98 3:58:46 PM, lincolnf@xxxxxxxxxxxxx writes:
>
><< 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.>>
>
>I wouldn't jump to any conclusions based on one bad experience. In my
>experience the arbitration panels usually bend over backwards to come
to the
>rescue of the little guys against the big firms. Arbitration is much,
much
>cheaper and faster than the alternatives.
>
>I know of one big firm in So Calif that has a bad reputation. They
REQUIRE
>their clients to sign a NON-arbitration agreement to discourage actions
>against them. This protects them from all the little clients who might
lose a
>few thousand. It costs thousands to bring an action in court these
days and
>it takes years to resolve. This firm never seems to have any legal
problems in
>spite of their continued disregard for their clients welfare. Who
wants to
>spend $10,000 or more to initiate a $5,000 claim?
>
>Chuck
>http://traderclub.com/
>
>
Chuck: If this is true, they are in violation of 17 CFR 180.1-180.5 of
the CFTC rules which clearly state that no broker can require an
arbitration agreement be signed as a condition of acceptance of the
account nor may it require that the customer waive his right to a
reparations hearing.
Regards, Jack.
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