Definition - What does Arbitration mean?
Arbitration is a forum provided by both the NYSE and FINRA to resolve disputes between two parities. Only a public customer may not be forced to settle a dispute through arbitration. The public customer must agree to arbitration in writing. All industry participants must settle disputes through arbitration.
Testopedia explains Arbitration
Arbitration is the industry's version of "civil court", in that only monetary disputes can be settled trough arbitration. When a complaint goes to arbitration that complaint is brought before an arbitration panel, which is made up of between one and seven arbitrators. The number of arbitrators on the panel is determined by the dollar amount of the complaint: fewer arbitrators are used for smaller complaints. The decision of the panel is final and binding. There are no appeals to arbitration.