NYMEX Rule 8.65 states that sanctions and restitution orders may be issued to a clerk as a formal disciplinary action for conduct in violation of Exchange rules. The Rule additionally holds Members and Member Firms responsible for any overdue fine or restitution amounts issued to their employees for violative conduct that occurred during the tenure of their employment, with the proviso that the Members and Member Firms may seek a waiver of responsibility for an employee’s overdue fine or restitution amount from a Hearing Panel. The amendments clarify that the disciplinary or floor committee that issued the fine and/or restitution order to a clerk also serves as the Hearing Panel that will determine any waiver of responsibility sought by a Member or Member Firm.
These changes will be made effective on August 27, 2008.
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Amendments to NYMEX Rule 8.65
(Insertions are indicated by bold, italicized text; deletions are indicated by bold, stricken text.)
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. 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 order issued to their employees during their tenure, pursuant to this Rule; provided however that the disciplinary or floor committee that issued the fine or restitution order 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. |
