(a) No banking institution shall
enter into any agreement or understanding with a retail forex customer
in which the customer agrees, prior to the time a claim or grievance
arises, to submit any claim or grievance regarding any retail forex
transaction or disclosure to any settlement procedure.
(b) Election of forum.
(1) Within 10 business days
after the receipt of notice from the retail forex customer that the
customer intends to submit a claim to arbitration, the banking institution
shall provide the customer with a list of persons qualified in dispute
resolution.
(2) The
customer must, within 45 days after receipt of such list, notify the
banking institution of the person selected. The customer’s failure
to provide such notice shall give the banking institution the right
to select a person from the list.
(c) Enforceability. A dispute settlement procedure
may require parties using the procedure to agree, under applicable
state law, submission agreement, or otherwise, to be bound by an award
rendered in the procedure if the agreement to submit the claim or
grievance to the procedure was made after the claim or grievance arose.
Any award so rendered by the procedure will be enforceable in accordance
with applicable law.
(d) Time limits for submission of claims. The dispute settlement
procedure used by the parties may not include any unreasonably short
limitation period foreclosing submission of a customer’s claims or
grievances or counterclaims.
(e) Counterclaims. A procedure for the settlement
of a retail forex customer’s claims or grievances against a banking
institution or employee thereof may permit the submission of a counterclaim
in the procedure by a person against whom a claim or grievance is
brought if the counterclaim:
(1) Arises out of the transaction or occurrence
that is the subject of the retail forex customer’s claim or grievance;
and
(2) Does not require
for adjudication the presence of essential witnesses, parties, or
third persons over which the settlement process lacks jurisdiction.
(f) Cross-border transactions. This section shall not apply to transactions
within the scope of sections 202, 302, and 305 of the Federal Arbitration
Act (9 U.S.C. 202, 302, and 305).
