August 6, 2010
Securities arbitration works in that it is much faster than a court hearing (hearings are usually less than five days as compared to weeks), takes less time to get to a hearing (less than 12 months, as compared to years for a court docket), less expensive for all individuals (forum fees and discovery costs), and provides a full and fair opportunity to litigate a dispute before an independent panel (usually consisting of one industry person and two non-industry persons).
To remove mandatory arbitration would clog up our overburdened court systems, backlog cases (justice delayed is justice denied), and may even result in the public not getting a chance to have their "day in court" (e.g., motion to dismiss).
The positives of mandatory arbitration highly outweigh the negatives.
The current system works.