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Keywords

Securities Act of 1933, Securities Act of 1934, United States Arbitration Act, securities arbitration, arbitration

Abstract

Securities arbitration panels have arisen to deal with the rising tide of securities litigation. However, the application of arbitration procedure to securities claims has caused problems with clashes of procedure and enforcement issues. The United States Arbitration Act was passed to The Supreme Court addressed some of those issues in Dean Witter Reynolds Inc. v. Byrd, but did not determine whether Wilko v. Swan's effective repeal of the Arbitration Act as it applies to securities claims brought under the Securities Act of 1933 also covered securities claims brought under the Securities Act of 1934. The author eventually determines that because of the policy advantages of arbitration, the securities industry should relax its standards to prevent brokers and buyers from forming contracts of adhesion through securities agreements that include mandatory arbitration provisions.

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