Notice to Members
Notice No. 124 03/10/2008
Amendment to Exchange Rule 3.10, Adjudication Committee
Each of the four Hearing Panels of the NYMEX and COMEX Adjudication Committee must consist of 10 regular panelists, including at least three public members. Currently, Exchange Rule 3.10(C) provides that seven members of a Hearing Panel shall constitute a quorum. The amendment reduces the number required for a quorum from seven to six panel members. The number of Exchange Members required on the panel will be reduced from four to three; the number of public members required will remain at three. This change is necessitated by the decrease in the number of Members present on the trading floor, and consequently, the difficulty in obtaining a quorum. These changes will be made effective on March 11, 2008. * * * * (Bold italics indicates additions and strikeout indicates deletions) Rule 3.10, Adjudication Committee (A) The Adjudication Committee shall be a Regular Committee and shall consist of a Chairman who is a Class A Member and four Hearing Panels ("Hearing Panels"). Each panel shall contain at least three persons who are neither Members of the Exchange nor employed by a Member, Member Firm or the Exchange ("Public Committee Members") and shall otherwise be balanced as equally as practicable among representatives of the Member categories: Floor Broker, Local, Trade and FCM (off-the-floor representative). There shall be no restriction on the affiliations or categories of alternates. The panel members and alternates shall be appointed by the Chairman, subject to approval of the Board. (B) (1) Two of the Hearing Panels shall be designated to hear matters pertaining to New York Mercantile Exchange Inc., ("NYMEX Inc.") and two of the Hearing Panels shall be designated to hear COMEX Division matters ("COMEX Hearing Panels"). Each panel shall consist of 10 regular panelists and as many alternates as the Chairman of the Committee shall designate. (2) The NYMEX Inc. members on the NYMEX Panels will consist of 70% Class A Members and 30% COMEX Division Members. The NYMEX Inc. members on the COMEX Hearing Panels will consist of 70% COMEX Division Members and 30 % Class A Members. (C) One person on each Hearing Panel shall serve as its Chairman and shall be designated by the Board as a Co-Vice-Chairman of the Adjudication Committee. Seven Six members of a Hearing Panel shall constitute a quorum for the purpose of exercising the powers of the Hearing Panel, provided that three Public Committee Members must be present. Alternates will be selected by the Chairman to replace any Member of a Hearing Panel unable to serve on any case, subject to the provisions of paragraph (A) above. (D) The Adjudication Committee shall hold such meetings as, in the discretion of the Chairman of the Committee are necessary to review matters pertaining to Exchange disciplinary actions, including but not limited to, Board policy and disciplinary precedents. (E) The Adjudication Committee shall make a report to the Board at least twice a year. The report shall detail the activities of the Committee for the period covered by such report and shall describe all disciplinary actions taken by the Committee during such period.
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