Arbitration is becoming an increasingly attractive prospect for financial institutions dealing with disputes: Simon Walsh explains its appeal
- Historically, financial institutions have preferred to have their disputes determined in national courts through litigation, with their powers of enforcement and summary judgment seen as key advantages.
- However, the attractiveness of arbitration as an alternative to litigation is on the increase, given the availability of specialist technical knowledge and the ease it offers when dealing with emerging markets and the UK post-Brexit.
With the war in Ukraine showing no sign of abating and the after-effects of the pandemic only slowly subsiding, global markets are in turmoil. The markets in the UK are not immune from this upheaval and indeed have their very own localised issues to contend with. Market turmoil inevitably leads to an increase in the number of disputes between and with financial market participants, and while those disputes will largely be subject to baked-in dispute provisions, thought naturally turns to how such disputes should best be resolved in the future. Historically, financial institutions based in the financial
