02/28/2008
Exchange Rule 8.55 outlines the Exchange's classification of offenses for disciplinary matters. The amendments to Rule 8.55 explicitly address the ability of the Exchange to impose a sanction which involves a suspension of membership privileges to include the loss of the ability to pay Member rates on electronic trades during the period of suspension. These amendments clarify sanctions that apply to trades entered through NYMEX electronic platforms, i.e., ClearPort® Trading and Chicago Mercantile Exchange Globex® (applicable housekeeping changes made to Rule 8.08). Also under Rule 8.55, the fine for a minor offense is increased from $10,000 to $25,000.
Exchange Rule 8.03 outlines procedures related to the negotiation of Offers of Settlements before the Business Conduct Committee ("BCC") to satisfy, without admitting or denying the allegations, charges of rule violations. The amendments include increasing the maximum fine the BCC can impose, when considering a proposed settlement for a case prior to the submission of an Investigative Report, from $5,000 to $10,000 for each Rule violation alleged. The amendments also raise the cap for the aggregate maximum fine amount for any individual respondent's settlement considered by the BCC from $100,000 to $250,000. In addition, in light of the guidelines presently in effect for disciplinary sanctions, the amendments include language providing that should either the BCC or Adjudication Committee deviate from the prescribed guideline minimum or maximum sanctions, the reasons for the deviation be included in the record of the proceedings or in the written decision where applicable.