What Happens After The Claim Is Filed?

Once the Statement of Claim has been received, the Director of Arbitration will send it to the (the "respondent"). Any member (e.g., brokerage houses) of an organization listed in the Services Directory may be a party in an arbitration proceeding. Similarly, an employee and/or representative of any such member also may be named as a party.

Following the receipt of the claim, the respondent has 60 calendar days to provide an answer, unless an extension of time has been granted by the Director of Arbitration. It is within the discretion of the Director of Arbitration to grant such extensions even over the objection of a party. However, the Director of Arbitration will consider the objection when determining the length of the extension.

The respondent may assert a related counterclaim as part of its answer, or may file a claim against a third party; that is, a claim against another person who may bear responsibility for any of the alleged damages. Generally, a claim is considered to be related if it pertains to the customer's account at the broker/dealer. In support of its defense or counterclaim, the respondent should attach copies of documents and to its answer.

The nice thing is that now all filing are electronic which means that notification of filings is immediate. And now there is no need to deal with paper copies.

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