In Shearson/American Express Inc. v. McMahon (1987) 482 U.S. 220, customers filed suit against a brokerage firm alleging violations of section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)). The brokerage firm moved to compel arbitration of the claims. The United States Supreme Court held that the securities claims were arbitrable under the federal arbitration act. The court stated: "In the exercise of its regulatory authority, the SEC has specifically approved the arbitration procedures of the New York Stock Exchange, the American Stock Exchange, and the NASD, the organizations mentioned in the arbitration agreement at issue in this case. We conclude that where, as in this case, the prescribed procedures are subject to the Commission's 19 authority, an arbitration agreement does not effect a waiver of the protections of the Act." (Id. at p. 234.)