NYMEX Rule 8.65 codifies the sanctions that may be issued when the Exchange takes formal disciplinary action against a clerk for conduct in violation of NYMEX rules. Currently, this Rule states that fines levied against a clerk cannot exceed $50,000 for each violation regardless of the number of separate occurrences. This amendment eliminates the limit on the fine that may be imposed, and therefore leaves the amount of the fine for individual occurrences of any rule violations up to the discretion of the sanctioning body upon consideration of the guidelines. NYMEX is also making a minor housekeeping amendment to this Rule. These changes will be made effective on June 20, 2008.
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Rule 8.65, Sanctions and Restitution Orders
Any penalty or restitution order that results from a formal disciplinary proceeding against a clerk may be imposed by a written settlement agreement or imposed by a hearing panel and may include suspension or permanent revocation of clerk privileges. and a fine not to exceed $50,000 for each violation. Clerks shall also be personally liable for applicable summary fines imposed pursuant to NYMEX Rule 6.60 and COMEX Rule 104.09, as applicable.
Members and Member Firms shall be responsible for any fine or restitution issued to their employees during their tenure, pursuant to this Rule; provided however that a hearing panel may waive such responsibility if it determines that the Member or Member Firm did not have knowledge of the employee's conduct forming the basis of the violation, and that a substantial injustice would result from imposing responsibility for a fine on the Member or Member Firm. |
