| Originally, securities arbitration was applied by the New York Stock Exchange (NYSE) in 1817, and has stood for 186 years. Initially, it only served as resolving the disputes between the members of NYSE. Later, U. S. Supreme Court in a few of leading cases gradually explained and extended what is arbitrable.In 1953, WILKO court held claims under Securities Act was not arbitrable. Afterwards, most of federal courts applied WILKO rule to Securities Exchange Act. In 1987, Mcmahon court held claims under Securities Exchange Act was arbitrable. 在1989,Rodriguez court definitely overturned WILKO rule, and held a predispute arbitration agreement was enforceable, including claims under Securities Act. 1987, Gilmer court further held employment claims between a broker firm and its employees were arbitrable. Besides, there are many forums for securities arbitration in USA. In addition to NYSE, other ones sponsored by Self-Rgulatory Organization(SRO) are National Association of Securities Dealers, the American Stock Exchange,Municipal Securities Rulemaking, Pacific Stock Exchange,Midwest Stock Exchange,the Boston Stock Exchange,the Chicago Board Options Exchg. Inc., Cincinnati Stock Exchange and Philadelphia Stock Exchange. American arbitration association(AAA) also one of forums for securities arbitration. To make the securities arbitration rules of the various SROs uniform throughout the country, as a result of SEC's recommending, the Securities Industry Conference on Arbitration(SICA) was established in April 1977, consisting of representatives of various SROs, the public, and the Securities Industry Assosiation (SIA). To a large extent, SICA's Uniform Code of Arbitration incorporated and harmonized the rules of the various SROs and codified various procedures that the SRO's had previously followed, but had not formalized in their existing rules.All kinds of securities can be submitted to arbitration in forums for securities arbitration. Although arbitrable securities is only stock under 1817 NYSE Constitution, the leading cases courts held that all securities provided in SecuritiesAct are arbitrable. Nearly all monetary commodities or certificates are regarded as securities, only if SEC and court come to an agreement.Varieties of securities disputes can be submitted to arbitration in forums for securities arbitration. The disputes mainly are ones between a broker and his customer or member disputes or employment claims. And the disputes arise from all sorts of securities transactions.The development of American securities arbitration is as a result of securities industry's leading and encouraging. In practice, option agreements, margin agreements or cash agreements often are the standard contracts with a arbitration clause provided by brokers. The arbitration clause provides the disputes between a broker and his customer shall be submitted to arbitration. In addition, the Exchanges give a disciplinary action, even disqualification of membership to brokers who don't enforce the SRO award. In order to encourage securities arbitration, courts have recognized substantially compulsory arbitration. The statutes and the leading cases strongly encourage arbitration. The government openly represented that the SRO's forums are fair. And many courts held that the arbitration clauses in the standard contracts were not in breach of public policy, that he has a burden of prove, if he argues the arbitration agreement is void before court. The arbitration rules are unique: (1) requirements for arbitrators. Each arbitrator is required to disclose to the Director of Arbitration any circumstances which might preclude such arbitrator from rendering an objective and impartial determination, and disclose any potential interest conflict in any process of arbitration; (2) If three arbitrators will hear the case, the Director will send each party two randomly-generated lists, one of public arbitrators and one of securities industry arbitrators. And parties are required to select two public arbitrators and...
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