10/20/2004
Audit Trail Classes
- Purpose -- to improve NYMEX'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 October 28, 2004, 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.