NYSE and securities dealers not budging on dispute rules. (Investments & Finance).

THE New York Stock Exchange and the National Association of Securities Dealers have refused to back down from their objections to new state arbitration rules, despite losing a recent lawsuit against the state.

Thousands of California investors' claims against stock brokers are on hold after the NYSE and the NASD, the forums for securities arbitration, refused to hear cases under the state's new ethics standards laws, which went into effect in July.

U.S. District Judge Samuel Conti, in the Northern District of California, dismissed the groups' lawsuit that claimed the rules were cumbersome and unnecessary.

But the NYSE and the NASD, backed by the Securities and Exchange Commission, said they would resume arbitrations in California as long as the parties agree to waive their rights under the new state laws.

"The New York Stock Exchange is pleased that the Securities and Exchange Commission has approved an NYSE rule that enables the Exchange to resume arbitration in California, provided that the parties waive the California standards," said a statement issued by the exchange. "The NYSE is contacting the parties whose cases are awaiting the appointment of arbitrators to offer them this option."