Arbitration in the financial sector – breaking with tradition
A new article dealing with the rise of arbitration in the financial world has been published on the SCC webpage.
Arbitration in the financial sector has increased in the aftermath of the financial crisis in 2008. Financial institutions, traditionally used to litigation, has been confronted with the need of a more efficient dispute resolution mechanism. The complexity of some of the new disputes also put high requirements on the skills of the judges.
Silvia Devulder, Legal Counsel at Swedbank AB addresses this in her new article “Rise of arbitration in the financial sector: breaking with tradition”. Reasons for selecting a specific dispute resolution method are discussed, and is put in relation to the use of market standard clauses, enforcements of court decisions, context and industry. (Court) litigation is in many areas still a preferred choice, with the Nordic however showing a different pattern, with surveys confirming arbitration as the preferred dispute resolution method.
In this context, SCC has recently adopted a model arbitration clause for use with the ISDA 2002 Master agreement.