Notice to Members
Notice No. 275 07/08/2005
Amendments to Exchange Rule 8.55 (A)(23): Failure to Supervise
At is meeting on July 6, 2005, the Board of Directors approved amendments to Exchange Rule 8.55(A)(23), effective Monday, July 11, 2005. The Major Offenses category pertaining to Failure to Supervise has been changed to reflect that when considering evidence that an employee's violation was a first offense, that the Member or Member Firm took immediate remedial action upon discovering the violation, and that the Member or Member Firm immediately informed the Exchange of the violation, be considered a mitigating factor rather than an affirmative defense. * * * * (Italics in bold indicate additions; strikethroughs in bold indicate deletions.) Rule 8.55, Classification of Offenses (A) Major Offenses No Member, Member Firm, or any employee of the foregoing shall commit a violation of any of the following rules, which shall be deemed major offenses of the Exchange. (23): Supervision. (a) To fail to supervise any employee of a Member or Member Firm adequately to prevent the violation by such employee of any Exchange Rule that: (i) results in substantial detriment to the welfare and interests of the Exchange; (ii) results in harm to a customer or another Member or Member Firm; or (iii) otherwise constitutes a Major Offense. (b) A showing that the violation of an Exchange Rule by an employee was a first offense of that kind and that the Member or Member Firm disclosed the violation to the Exchange and took immediate and appropriate remedial action on its own initiative upon discovering the violation shall be an affirmative defense to considered as mitigation to a charge of violating Rule 8.55(A)(23)(a).
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com