02/07/2003
Audit Trail Classes
- Purpose—to improve the Exchange's overall audit trail by reducing
the number of members falling below the 80% summary disciplinary action standard
for pit card submission, thereby reducing the number of members receiving
pit card fines.
- Members may:
- Attend an audit trail class on February 12, 2003, with future dates
to be determined. The class will be an intensive discussion of pit card problems
and pitfalls with emphasis on how the audit trail works and successful strategies
for achieving a passing grade. Members will analyze their own trading style
in light of the material presented and pinpoint areas where they need to improve.
Members will outline a plan for raising their own pit card submission performance
rate and receive feedback from Committee Members and Staff. Members are strongly
encouraged to bring their clerks with them.
- Upon completion of the class, members will be allowed to "do
over" up to two out of the subsequent six months in which they receive
a warning letter or fine for substandard trade time submission rates between
70% and 79%. Members will not receive a fine or warning letter for a "do
over" month but the month will not count as a passing month. A member
whose submission percentage falls below 70% will receive a fine or warning letter.
- The benefit of attending will be that a month that would have counted
as a failure will not count at all, as long as the member achieves at least
a 70% submission rate. Members still need four problem-free months to clear
out their record. For example, a member who has not received a fine for three
months can benefit from "doing over" a fourth failing month; if
he passes a total of four out of six months. The member can still use a second
"do over" month as long as he meets all criteria. He will then return
to the warning letter sanction level.
- Staff will follow up with members attending the classes. Members will
receive a breakdown of their most recent audit trail fine. They will also be
invited to discuss their percentages with staff one-on-one. Further, staff will
supply daily or weekly statistics to any member by e-mail upon request.
- Members are eligible for only one class during a twelve-month period. A member must take a class before becoming eligible for the benefits described above. Additional classes may be offered at the discretion of the Compliance Review and Floor Committees.
- Attend an audit trail class on February 12, 2003, with future dates
to be determined. The class will be an intensive discussion of pit card problems
and pitfalls with emphasis on how the audit trail works and successful strategies
for achieving a passing grade. Members will analyze their own trading style
in light of the material presented and pinpoint areas where they need to improve.
Members will outline a plan for raising their own pit card submission performance
rate and receive feedback from Committee Members and Staff. Members are strongly
encouraged to bring their clerks with them.