Author Archives: Désirée Klingler

P.R.I.M.E. Finance – the Boon and Bane of a Specialized Dispute Resolution Institution

P.R.I.M.E. Finance is an arbitral institution specialized in the settlement of financial disputes that was established in The Hague in 2012. As a relatively novel arbitral institution it is not only facing promising opportunities but also difficult challenges.

A hotly debated topic is P.R.I.M.E. Finance’s closed list of arbitrators from which the parties are obliged to choose. While the list includes specialists with expertise in finance and arbitration, it is nevertheless exclusive and may therefore lose attractiveness vis-à-vis other arbitral institutions. Another issue is the publication of awards by P.R.I.M.E. Finance. Even though the transparency of awards helps to build up a consistent body of law aiming at more legal certainty in the financial markets, parties may be unwilling to trade off the confidentiality advantage of arbitration.

Despite these challenges, P.R.I.M.E. Finance may have a positive market resonance. In September 2013, its model arbitration clause has been hardwired into the first Arbitration Guide of the International Swaps and Derivatives Association (ISDA), a market with a tremendous volume.

By Désirée Klingler (Reference: CapLaw-2015-43)