Cross-bourse reciprocity multiplies the cost of ignoring arbitration rulings. [causal]
The DDC Bylaws provide that "[a]ll decisions of arbitration panels including floor committee arbitrations which are not complied with within 10 working days, together with the picture of the non-complying member, shall be posted in a conspicuous place in the Club rooms." … As a condition of membership in the federation, each bourse agrees to enforce the judgments of all member bourses. Since most diamond dealers frequently transact in foreign bourses, this reciprocity of enforcement greatly increases the penalty for failing to voluntarily comply with an arbitration judgment.
XREF: Connects to reputation and enforcement economics — mutual enforcement across organizations amplifies sanctions, similar to how reputation networks work in other tight-knit industries.
Lisa Bernestein, Opting out of the Legal Sys…, loc. 93