ARBITRATING FINANCIAL DISPUTES: THE PRIME FINANCE ARBITRATION RULES COMPARED
On 1 January 2022, the revised Panel of Recognised International Market Experts in Finance (PRIME Finance) Arbitration Rules came into effect. This marks its third iteration since PRIME Finance was launched in 2012 as a specialised forum for the resolution of financial disputes, which arbitrations have been administered by the Permanent Court of Arbitration (PCA) since 2015. The PRIME Rules follow in the wake of a series of rules revisions major arbitral institutions have undertaken, such as those by the International Chamber of Commerce (ICC) and the American Arbitration Association/International Centre for Dispute Resolution (AAA/ICDR) in 2021 and the London Court of International Arbitration (LCIA) in 2020.
In the decade since PRIME Finance was established, arbitration has slowly gained traction as a means of resolving financial disputes, despite the traditional preference for litigation in key financial centres such as London and New York. Perhaps unsurprisingly, London and New York are still popular seats for arbitrations involving financial market participants. In 2019 and 2020, over a fifth of the LCIA’s caseload was comprised of disputes from the financial sector; the AAA-ICDR has reported significant increases in financial services cases over a similar period.
The release of the 2018 ISDA Arbitration Guide has no doubt contributed to this trend. The ISDA Arbitration Guide includes model arbitration clauses from 11 different institutional rules. This includes PRIME Finance’s model clauses, alongside traditional offerings from institutions such as the ICC, the LCIA, the AAA-ICDR, the Singapore International Arbitration Centre (SIAC) and the Hong Kong International Arbitration Centre (HKIAC).
Apr-Jun 2022 issue
Wilmer Cutler Pickering Hale and Dorr LLP