06/04/2004
8.70 - Floor Order Ticket Reviews – Summary Violations
(A) If the Compliance Department determines that a NYMEX Division FCM, Member Firm or Floor Brokerage Operation has failed to comply with NYMEX Division Rule 6.18(A)(i) or (ii) or that a COMEX Division FCM, Member Firm or Floor Brokerage Group has failed to comply with COMEX Division Rules 4.80 or 4.81 with respect to the preparation of floor order tickets, by achieving a compliance rate of 89% or lower, it may summarily implement disciplinary procedures as follows:
(B) After an initial review, the Compliance Department may impose fines corresponding to the following rates of compliance:
| 89-80% | $100 |
| 79-70% | $250 |
| 69-60% | $500 |
| 59% and Below | $1,000 |
(C) If after a second review an entity fails to achieve a passing compliance rate, the Compliance Department may impose a fine in the amount imposed in the initial review under (B), plus an additional amount corresponding to their rate of compliance achieved in the second review, as follows:
| 89-80% | (B) + $100 |
| 79-70% | (B) + $250 |
| 69-60% | (B) + $500 |
| 59% and Below | (B) + $1,000 |
(D) If after a third review an entity fails to achieve a passing compliance rate, the Compliance Department may impose a fine in the amount imposed in the initial review under (C), plus an additional amount corresponding to their rate of compliance achieved in the third review, as follows:
| 89-80% | (C) + $200 |
| 79-70% | (C) + $500 |
| *69-60% | (C) + $1,000 |
| *59% and Below | (C) + $2,000 |
*The Compliance Department may, in its discretion, refer to the Business Conduct Committee any entity achieving a compliance rate of 69% and below after a third review.
If after a fourth review an entity fails to achieve a passing compliance rate, the Compliance Department may refer the entity to the Business Conduct Committee for disciplinary action.
(E) Any fine imposed in accordance with this Rule may be appealed to a subcommittee of the Compliance Review Committee ("Subcommittee"). The Subcommittee shall consist of a Chairman, two additional Subcommittee members and two alternates. The Subcommittee members and alternates shall be appointed by the Chairman of the Compliance Review Committee. To appeal a fine, a Member shall file a typewritten request with the Exchange's Compliance Counsel within five (5) business days after receipt of the notice of such fine. The letter of appeal should set forth the reason for the requested appeal and attach any relevant documents. The Subcommittee shall meet at such times as it deems appropriate, and shall reach its decision based upon the letter of appeal and any other documents furnished by the Member subject to the fine with the appeal letter or by the Compliance Department. The Subcommittee in its sole discretion may permit or require personal appearances by the Member and/or the Compliance Department. The Subcommittee shall affirm, modify or reverse the fine appealed and shall issue its Decision in writing within thirty (30) days of meeting to consider the appeal.