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U.S. Code as of:
01/03/05
Section 12c. Disciplinary actions
(a) Action taken; written notice of reasons for action
(1) Any exchange or the Commission if the exchange fails to act,
may suspend, expel, or otherwise discipline any person who is a
member of that exchange, or deny any person access to the exchange.
Any such action shall be taken solely in accordance with the rules
of that exchange.
(2) Any suspension, expulsion, disciplinary, or access denial
procedure established by an exchange rule shall provide for written
notice to the Commission and to the person who is suspended,
expelled, or disciplined, or denied access, within thirty days,
which includes the reasons for the exchange action in the form and
manner the Commission prescribes. An exchange shall make public its
findings and the reasons for the exchange action in any such
proceeding, including the action taken or the penalty imposed, but
shall not disclose the evidence therefor, except to the person who
is suspended, expelled, or disciplined, or denied access, and to
the Commission.
(b) Review by Commission
The Commission may, in its discretion and in accordance with such
standards and procedures as it deems appropriate, review any
decision by an exchange whereby a person is suspended, expelled,
otherwise disciplined, or denied access to the exchange. In
addition, the Commission may, in its discretion and upon
application of any person who is adversely affected by any other
exchange action, review such action.
(c) Affirmance, modification, set aside, or remand of action
The Commission may affirm, modify, set aside, or remand any
exchange decision it reviews pursuant to subsection (b) of this
section, after a determination on the record whether the action of
the exchange was in accordance with the policies of this chapter.
Subject to judicial review, any order of the Commission entered
pursuant to subsection (b) of this section shall govern the
exchange in its further treatment of the matter.
(d) Stay of action
The Commission, in its discretion, may order a stay of any action
taken pursuant to subsection (a) of this section pending review
thereof.
(e) Major disciplinary rule violations
(1) The Commission shall issue regulations requiring each
registered entity to establish and make available to the public a
schedule of major violations of any rule within the disciplinary
jurisdiction of such registered entity.
(2) The regulations issued by the Commission pursuant to this
subsection shall prohibit, for a period of time to be determined by
the Commission, any individual who is found to have committed any
major violation from service on the governing board of any
registered entity or registered futures association, or on any
disciplinary committee thereof.
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