The Financial Industry Regulatory Authority yesterday detailed a special arbitration procedure for investors who suffered "consequential damages," such as losses that resulted from their inability to liquidate their auction-rate securities for cash.

"This special arbitration procedure will provide swifter resolution at reduced cost for customers claiming consequential financial harm related to the sudden and widespread inability to liquidate auction-rate securities into cash earlier in the year," Linda Fienberg, president of FINRA Dispute Resolution, said in a release. The ARS market froze in February after broker-dealers stopped supporting the auctions.

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