2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996|
Email This to a Friend
March 19, 2008
Amendment to Code of Arbitration
Explanation of Rule Change
On March 13, 2008, the Commodity Futures Trading Commission approved an amendment to Section 9 of NFA's Code of Arbitration. This rule change imposes a $525 fee on any party who requests an oral hearing for a claim that would otherwise be processed as a summary proceeding. The amendment will become effective for all claims filed on or after April 1, 2008.
The Code provides that all cases with claim amounts of $25,000 or under are administered by a summary proceeding where one arbitrator decides the case based on the parties' written submissions. However, for claims between $15,000.01 and $25,000, the Code allows the proceeding to be changed to the oral hearing if one of the party requests. NFA devotes significantly more resources to matter processed as an oral hearing and the costs associated with the matter increase.
In order to recover some of these increased costs, NFA will impose a $525 fee upon the party requesting an oral hearing in a case originally filed as a summary proceeding. This fee represents the additional fees NFA would have collected had the matter fallen in the oral hearing category at the time it was filed. NFA believes it is appropriate to assess the entire fee against the party requesting an oral hearing since that party is seeking to change the way the matter is administered.
If you have any questions regarding this Notice or the changes to the arbitration rules, please contact NFA's Arbitration Department at (800) 621.3570.