Notice to Members
Notice No. 364 12/26/2002
Compliance Advisory - Pit Card Submissions
Please be reminded that it is the Members responsibility to report all sell transactions to the Exchange by submitting pit cards to the Exchange. Trades that are not entered into the TMS system by the Exchange as a result of a regular pit card submission by the Member must be submitted to the Corrections area on the trading floor. Such trades are identified as Late Submissions and do not count against an individual Members on-time pit card submission percentage. However, Members should be aware that excessive use of the Late Submissions process may result in Warning Letters, Fines or other disciplinary action. NO MEMBER, CLERK OR OTHER EMPLOYEE MAY RECORD TRADES DIRECTLY ON ANY PIT CARD FOR SUBMISSION TO THE PIT. IT IS THE MEMBER'S RESPONSIBILITY TO ENSURE THAT TRADES ARE NOT SUBMITTED IN THIS MANNER. Any pit card containing trades written directly onto the card (not a carbon image as produced by a properly recorded and submitted pit card) will be rejected by Data Entry staff. Such pit cards will be maintained separately by Data Entry and then forwarded to the Compliance Department for possible further review or action. Operational Procedures: Trade Corrections will receive a photocopy of all rejected pit cards. Trade Corrections staff will notify brokers via TMS e-mail that a pit card with trade information has been rejected. Broker representatives will receive a photocopy of the rejected pit card(s) and will be required to submit the rejected trades for processing via the Trade Corrections area. The Exchange will not be responsible for entering such trades into the TMS system without proper submission procedures by a broker representative (clerk). Failure to abide by this rule may result in disciplinary action. 2.41 Responsibility of Members and Member Firms for Actions of Employees (A) A Member, Member Firm, Permit Holder and Electronic Trader shall be responsible for, and subject to disciplinary action as a result of, the acts or omissions and for the breaches or violation of Bylaws and Rules of its employees.(B) A Member Firm is responsible for, and subject to, disciplinary action as a result of, the acts and omissions, and for the breaches or violations of the Bylaws and Rules of its partners, directors, or officers. 6.10 Reporting of Trades Executed on the Trading Floor (in pertinent part) (A) A Trading Member who sells a contract on the trading floor of the Exchange shall report to a designated Exchange employee execution of such transaction within 1 minute of completion... (B) If any Trading Member discovers that a properly executed transaction in which he has participated on the Exchange Floor has not been reported by the Exchange, or has been reported incorrectly, he immediately shall notify the Chairman or any Vice Chairman or any member of the Floor Committee, the Floor Manager or any Exchange Employee, who is designated by the President for such purpose, of such fact and request that the transaction be included in the Exchange Records as an insert or correction, as the case may be. 6.90 Trading Card Procedures (in pertinent part) (A) A Floor Member shall regularly and promptly record all transactions that he executes on a sequentially numbered trading card pre-printed and issued by the Exchange....(D) The hard ply of the trading card shall be used to report the sale of futures and options contracts within 1 minute of execution in accordance with Exchange Rule 6.10....(E) Members shall use non-erasable ink when recording transactions on trading cards....
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