On the broker documentation there is this arbitration agreement, it also says a customer does not have to sign this.
What is your advice guys, I have no knowledge of these matters.
TIA
Arbitration Agreement
Customer voluntarily agrees to submit any dispute with FuturesRUs to binding arbitration. If a
dispute arises, Customer will be given a choice of three qualified arbitration forums when
Customer notifies FuturesRUs that he intends to submit a dispute to arbitration or when FuturesRUs
notifies customer that it intends to submit a dispute to arbitration. Customer must notify
FuturesRUs by registered mail of his choice of arbitration forum within forty-five days after
receiving the list of three arbitration forums. If Customer fails to notify FuturesRUs of his choice
within that time, then FuturesRUs may choose the arbitration forum that will resolve the dispute.
FuturesRUs agrees to pay any incremental fees that may be assessed by the forum chosen by
Customer for the provision of a "mixed panel" of arbitrators, unless the arbitrators determine that
Customer has acted in bad faith in initiating or conducting the proceedings. Judgment upon any
award rendered by the arbitrators may be entered in any court having jurisdiction thereof.
THREE FORUMS EXIST FOR THE RESOLUTION OF COMMODITY DISPUTES:
CIVIL COURT LITIGATION, REPARATIONS AT THE COMMODITY FUTURES
TRADING COMMISSION (âCFTCâ) AND ARBITRATION CONDUCTED BY A SELFREGULATORY
OR OTHER PRIVATE ORGANIZATION.
THE CFTC RECOGNIZES THAT THE OPPORTUNITY TO SETTLE DISPUTES BY
ARBITRATION MAY IN SOME CASES PROVIDE MANY BENEFITS TO
CUSTOMERS, INCLUDING THE ABILITY TO OBTAIN AN EXPEDITIOUS AND
FINAL RESOLUTION OF DISPUTES WITHOUT INCURRING SUBSTANTIAL
COSTS. THE CFTC REQUIRES, HOWEVER, THAT EACH CUSTOMER
INDIVIDUALLY EXAMINE THE RELATIVE MERITS OF ARBITRATION AND
THAT YOUR CONSENT TO THIS ARBITRATION AGREEMENT BE VOLUNTARY.
BY SIGNING THIS AGREEMENT, CUSTOMER: (1) MAY BE WAIVING HIS RIGHT
TO SUE IN A COURT OF LAW; AND (2) IS AGREEING TO BE BOUND BY
ARBITRATION OF ANY CLAIMS OR COUNTERCLAIMS WHICH CUSTOMER OR
FUTURESRUS MAY SUBMIT TO ARBITRATION UNDER THIS AGREEMENT.
CUSTOMER IS NOT, HOWEVER, WAIVING HIS RIGHT TO ELECT INSTEAD TO
PETITION THE CFTC TO INSTITUTE REPARATIONS PROCEEDINGS UNDER
SECTION 14 OF THE COMMODITY EXCHANGE ACT WITH RESPECT TO ANY
DISPUTE WHICH MAY BE ARBITRATED PURSUANT TO THIS AGREEMENT. IN
THE EVENT A DISPUTE ARISES, CUSTOMER WILL BE NOTIFIED IF FUTURESRUS
INTENDS TO SUBMIT THE DISPUTE TO ARBITRATION. IF CUSTOMER
BELIEVES A VIOLATION OF THE COMMODITY EXCHANGE ACT IS INVOLVED
AND IF CUSTOMER PREFERS TO REQUEST A SECTION 14 "REPARATIONS"
PROCEEDING BEFORE THE CFTC, CUSTOMER WILL HAVE 45 DAYS FROM THE
DATE OF SUCH NOTICE IN WHICH TO MAKE THAT ELECTION.
A-2
CUSTOMER NEED NOT SIGN THIS ARBITRATION AGREEMENT TO OPEN AN
ACCOUNT WITH FUTURESRUS. SEE 17 C.F.R. 166.5.
What is your advice guys, I have no knowledge of these matters.
TIA
Arbitration Agreement
Customer voluntarily agrees to submit any dispute with FuturesRUs to binding arbitration. If a
dispute arises, Customer will be given a choice of three qualified arbitration forums when
Customer notifies FuturesRUs that he intends to submit a dispute to arbitration or when FuturesRUs
notifies customer that it intends to submit a dispute to arbitration. Customer must notify
FuturesRUs by registered mail of his choice of arbitration forum within forty-five days after
receiving the list of three arbitration forums. If Customer fails to notify FuturesRUs of his choice
within that time, then FuturesRUs may choose the arbitration forum that will resolve the dispute.
FuturesRUs agrees to pay any incremental fees that may be assessed by the forum chosen by
Customer for the provision of a "mixed panel" of arbitrators, unless the arbitrators determine that
Customer has acted in bad faith in initiating or conducting the proceedings. Judgment upon any
award rendered by the arbitrators may be entered in any court having jurisdiction thereof.
THREE FORUMS EXIST FOR THE RESOLUTION OF COMMODITY DISPUTES:
CIVIL COURT LITIGATION, REPARATIONS AT THE COMMODITY FUTURES
TRADING COMMISSION (âCFTCâ) AND ARBITRATION CONDUCTED BY A SELFREGULATORY
OR OTHER PRIVATE ORGANIZATION.
THE CFTC RECOGNIZES THAT THE OPPORTUNITY TO SETTLE DISPUTES BY
ARBITRATION MAY IN SOME CASES PROVIDE MANY BENEFITS TO
CUSTOMERS, INCLUDING THE ABILITY TO OBTAIN AN EXPEDITIOUS AND
FINAL RESOLUTION OF DISPUTES WITHOUT INCURRING SUBSTANTIAL
COSTS. THE CFTC REQUIRES, HOWEVER, THAT EACH CUSTOMER
INDIVIDUALLY EXAMINE THE RELATIVE MERITS OF ARBITRATION AND
THAT YOUR CONSENT TO THIS ARBITRATION AGREEMENT BE VOLUNTARY.
BY SIGNING THIS AGREEMENT, CUSTOMER: (1) MAY BE WAIVING HIS RIGHT
TO SUE IN A COURT OF LAW; AND (2) IS AGREEING TO BE BOUND BY
ARBITRATION OF ANY CLAIMS OR COUNTERCLAIMS WHICH CUSTOMER OR
FUTURESRUS MAY SUBMIT TO ARBITRATION UNDER THIS AGREEMENT.
CUSTOMER IS NOT, HOWEVER, WAIVING HIS RIGHT TO ELECT INSTEAD TO
PETITION THE CFTC TO INSTITUTE REPARATIONS PROCEEDINGS UNDER
SECTION 14 OF THE COMMODITY EXCHANGE ACT WITH RESPECT TO ANY
DISPUTE WHICH MAY BE ARBITRATED PURSUANT TO THIS AGREEMENT. IN
THE EVENT A DISPUTE ARISES, CUSTOMER WILL BE NOTIFIED IF FUTURESRUS
INTENDS TO SUBMIT THE DISPUTE TO ARBITRATION. IF CUSTOMER
BELIEVES A VIOLATION OF THE COMMODITY EXCHANGE ACT IS INVOLVED
AND IF CUSTOMER PREFERS TO REQUEST A SECTION 14 "REPARATIONS"
PROCEEDING BEFORE THE CFTC, CUSTOMER WILL HAVE 45 DAYS FROM THE
DATE OF SUCH NOTICE IN WHICH TO MAKE THAT ELECTION.
A-2
CUSTOMER NEED NOT SIGN THIS ARBITRATION AGREEMENT TO OPEN AN
ACCOUNT WITH FUTURESRUS. SEE 17 C.F.R. 166.5.