All Participants, their Authorized Users, Clearing Members and any Person for whose benefit a transaction has been initiated or executed, are subject to Exchange and Clearinghouse jurisdiction. Any Participant or any other person using any of its User IDs that are alleged to have violated, to have aided and abetted a violation, to be violating, or to be about to violate, any Rule of the Exchange or Clearinghouse or applicable law for which the Exchange or Clearinghouse maintains disciplinary jurisdiction is subject to this Chapter 6. No Official will interfere with or attempt to influence the process or resolution of any inquiry, investigation, disciplinary proceeding, appeal from a disciplinary proceeding, summary imposition of fines, summary suspension or other summary action (collectively, "Disciplinary Action"), except to the extent provided under Exchange or Clearinghouse Rules with respect to a proceeding in which the director is a member of the relevant Board of Appeals. A Participant or Clearing Members shall be entitled to appear personally and may be represented by counsel during any Disciplinary Action pursuant to this Chapter 6.

1. Compliance Department. The Compliance Department is appointed and authorized by the Chief Executive Officer of the Exchange to provide market surveillance, investigation and enforcement of trading activities on the Exchange to ensure compliance with Exchange and Clearinghouse Rules and applicable laws. The Compliance Department has three primary functions:

   1. The Surveillance Team is responsible for real-time and post-trade surveillance of the Exchange's trading systems. Members of the Surveillance Team respond to real-time alerts to ensure the integrity of the markets. The Surveillance Team identifies actions or omissions that may indicate a possible basis for finding that a violation of Exchange or Clearinghouse Rules has occurred or will occur.

   2. Investigations and enforcement are conducted by the Investigation Team. The Investigation Team is comprised of Exchange employees and/or persons hired on a contract basis, except for Exchange Participants, Clearing Members or other Persons whose interests conflict with enforcement duties. The Investigation Team may not operate under the direction or control of any person(s) with trading privileges. The Investigation Team is authorized, among other things, to:

      1. initiate and conduct investigations;

      2. prepare investigative reports and make recommendations concerning initiating disciplinary proceedings, including any charges to be issued;

      3. participate in settlement discussions with respondents and recommend settlement sanctions to the Disciplinary Committee; and

      4. prosecute alleged violations within the Exchange's or Clearinghouse's disciplinary jurisdiction.

   3. The Disciplinary Committee is appointed by the Board at the recommendation of the Chief Regulatory Officer and shall be comprised of not less than three individuals from among Participants, Clearing Members and other Persons with knowledge and experience in the financial markets, who are not involved in the conduct giving rise to the alleged Rule violations.

2. Third-Party Enforcement. The Exchange or Clearinghouse may delegate any of its rights and responsibilities herein to a Regulatory Services Provider.

3. Expense Liability. At the discretion of the Exchange, any Participant or Clearing Member found in violation of the Rules may be required to pay to the Exchange any and all expenses incurred as a result of the investigation of the violation and prosecution of the Participant or Clearing Member. This assessment is in addition to any monetary fines imposed for the Rule violation(s).

1. Investigations. The Investigation Team will investigate any matter within the Exchange or Clearinghouse's jurisdiction of which it becomes aware. The Investigation Team will commence an investigation upon the receipt of a request from Commission staff or upon the discovery or receipt of information by the Exchange or Clearinghouse that, in the judgment of the Surveillance Team, indicates a possible basis for a finding that a violation has occurred or will occur. The Investigation Team shall determine the nature and scope of its investigations in its sole discretion and will operate independently of the commercial interests of the Exchange or Clearinghouse. Absent mitigating circumstances, the Investigation Team must complete its investigation within twelve (12) months after the date the investigation is opened. Permissible mitigating circumstances include the complexity of the investigation, the number of firms or individuals involved in as potential respondents, the number of potential violations to be investigate and the volume of documentation and data that must be analyzed.

   Upon request by a member of the Investigation Team, a Participant, Authorized User, Clearing Member, and Customer:

   1. is obligated to appear and testify and respond in writing to interrogatories within the specified time period in connection with:

      1. the Rules;

      2. any inquiry or investigation; or

      3. any preparation by and presentation during a Disciplinary Action;

   2. is obligated to produce books, records, papers, documents or other tangible evidence in its, his or her possession, custody or control within the specified time period in connection with:

      1. the Rules;

      2. any inquiry or investigation; or

      3. any preparation by and presentation during a Disciplinary Action;

   3. may not impede or delay any Disciplinary Action.

2. Reports of Investigations. The Investigation Team will submit a written report of each investigation to the Disciplinary Committee and maintain a log of all investigations and their disposition. The written report of the investigation (the "Investigation Report") will include the reasons for initiating the investigation, all relevant facts and evidence gathered, analysis and conclusions, the Participant's or Clearing Member's disciplinary history at the Exchange or Clearinghouse, and will consist of one of the following recommendations:

   1. closing the investigation without further action;

   2. settlement;

   3. summary action;

   4. the preparation and service of a notice of charges for instituting a disciplinary proceeding; or

   5. resolving the investigation through an informal disposition, including the issuance of a warning letter. An informal disposition (including the issuance of a warning letter) will not constitute a finding of a violation or a sanction, however, the investigative report must include a copy of any warning letter and no more than one warning letter for the same potential violation may be issued to the same Participant or Clearing Member during a rolling 12-month period.

3. Review of Reports of Investigations. The Disciplinary Committee will determine whether a reasonable basis exists to believe that a violation within the Exchange or Clearinghouse's jurisdiction has occurred or is about to occur. The Disciplinary Committee will determine for each Respondent whether to authorize:

   1. the informal disposition of the investigation (by issuing a warning letter or otherwise) because disciplinary proceedings are unwarranted; or

   2. the closing of the investigation without any action because no reasonable basis exists to believe that a violation within the Exchange or Clearinghouse's jurisdiction has occurred or is about to occur; or,

   3. the commencement of disciplinary proceedings because a reasonable basis exists to believe that a violation within the Exchange or Clearinghouse's jurisdiction has occurred or is about to occur.

4. Opportunity to Respond. At the discretionary authority of the Disciplinary Committee, the Compliance Department may notify the Respondent(s) that formal disciplinary charges are recommended and allow the Respondent to submit, within the specified time period, an offer of settlement or a written statement explaining why disciplinary proceedings should not be instituted or why one or more of the charges should not be brought.

5. Service of Notice of Charges. Once the Disciplinary Committee authorizes disciplinary proceedings, the Compliance Department will prepare and serve a notice of charges that will provide as follows:

   1. state the acts, practices or conduct that the Respondent is alleged to have engaged in;

   2. state the Exchange or Clearinghouse Rule or provision of applicable law alleged to have been violated or about to be violated;

   3. state the proposed sanctions;

   4. advise the Respondent of its right to a hearing;

   5. advise the Respondent that he or she has the right to be represented by legal counsel or any other representative of its choosing in all succeeding stages of the disciplinary process;

   6. state the period of time within which the Respondent can request a hearing on the notice of charges, which will not be less than fourteen (14) days after service of the notice of charges;

   7. advise the Respondent that any failure to request a hearing within the period stated, except for good cause, will be deemed to constitute a waiver of the right to a hearing; and

   8. advise the Respondent that any allegation in the notice of charges that is not expressly denied will be deemed to be admitted.

   The service of notice upon the Respondent shall be deemed complete via email to the contact as it appears on the books and records of the Exchange or Clearinghouse or in the Participant Agreement or Clearing Member Agreement.

6. Answer to Service of Notice of Charges. If the Respondent decides to answer a notice of charges, the Respondent must file answers within fourteen (14) days after being served with such notice, or within such other time period as stated in such notice of charges. The Respondent must answer the notice of charges in writing as follows:

   1. specify the allegations that the Respondent denies or admits;

   2. specify the allegations that the Respondent does not have sufficient information to either deny or admit;

   3. specify any specific facts that contradict the notice of charges;

   4. specify any affirmative defenses to the notice of charges; and

   5. sign and serve the answer on the Chief Regulatory Officer.

   Failure by the Respondent to timely serve an answer to the notice of charges will be deemed to be an admission to the allegations in such notice. Any allegation in a notice of charges that the Respondent fails to expressly deny will be deemed admitted. A general denial by the Respondent, without more, will not satisfy the requirements herein.

7. Settlement Offers. At any time after a notice of charges has been issued, a Respondent may at any time submit to the Compliance Department a written offer of settlement related to anticipated or instituted disciplinary proceedings. The Disciplinary Committee may, in its discretion, permit the Respondent to settle disciplinary proceedings without admitting or denying the rule violations if the Respondent consents to the entry of findings and sanctions imposed. If an offer of settlement is accepted, the Disciplinary Committee shall issue a written decision specifying the rule violations it has reason to believe were committed and any penalties imposed. All offers of settlement that have been accepted by the Disciplinary Committee may not be appealed.

   If the offer of settlement is not accepted by the Disciplinary Committee, or fails to become final, or is withdrawn by the Respondent, the matter will proceed as if the offer had not been made such that the Respondent shall not be deemed to have made any admissions by reason of the settlement offer and shall not be otherwise prejudiced by having submitted the settlement offer.

8. Hearing Panel.

   1. Participants and Clearing Members may request a formal hearing on charges denied in the Respondent's answer to the notice of charges per Rule 603.6. The Hearing Panel, appointed by the Board at the recommendation of the Chief Regulatory Officer, shall be comprised of not less than three individuals from among Participants and Clearing Members (consisting of one Public Director, one representative of the brokerage community and one representative of the trading community), and/or other individuals with knowledge and experience in the financial markets, who are not involved in the conduct giving rise to the alleged Rule violations. The individuals on the Hearing Panel will serve until the related proceedings are completed. The chair of the Hearing Panel will be an individual qualified to be a Public Director.

   2. The Respondent will be notified of the appointment of the Hearing Panel and must respond within 10 days by serving notice to the Chief Regulatory Officer if the Respondent seeks to disqualify any individual names to the Hearing Panel for reasonable grounds including that such individual has a financial interest in the matter. Legal counsel, other than the Chief Regulatory Officer, will decide the merits of any request for disqualification within his or her sole discretion. Such decision will be final and not subject to appeal.

   3. Prior to the commencement of the hearing, the Respondent will be given the opportunity to review all books, records, documents, transcripts of testimony and other tangible evidence in the possession or under the control of the Exchange or Clearinghouse to be used by the Compliance Department to support the allegations and proposed sanctions in the notice of charges, except for information protected by attorney-client privilege. The Compliance Department may redact, edit or code information that could adversely affect the competitive position of the person providing the information or if such information might compromise other investigations being conducted by the Compliance Department. However, the Compliance Department may not redact, edit or code information that would impair the Respondent's ability to defend against allegations or proposed sanctions in the notice of charges.

   4. The following rules shall apply in each case presented before the Hearing Panel:

      1. The Compliance Department shall prosecute the case.

      2. Formal rules of evidence do not apply.

      3. The Respondent shall be entitled to appear personally at the hearing and have the choice of being represented by legal counsel or another representative. The Respondent's representation is limited to two individuals.

      4. The Respondent has the power to cross-examine witnesses and present documentary evidence.

      5. The burden of proof is on the Compliance Department.

      6. A majority vote of the Hearing Panel is needed to find a violation of the Rules.

   5. No Person shall serve on the Hearing Panel unless that Person has agreed in writing that he or she will not publish, divulge, or make known in any manner, any facts or information regarding the business of any person or any other information which may be obtained while serving as a member of the Hearing Panel, except for disclosures when reporting to the Board, the Compliance Department, upon request by the Commission or other Governmental Authority, or when compelled to testify in a judicial or administrative proceeding. Furthermore, no Person shall serve on the Hearing Panel if such Person has already been involved in the Disciplinary Action for any reason. The hearing will be conducted privately and confidentially. Notwithstanding the confidentiality of the hearings, the Hearing Panel may appoint an expert to attend any hearing and assist in deliberations if such expert agrees to be subject to an appropriate confidentiality agreement.

   6. The chair of the Hearing Panel shall conduct the hearing as he or she may deem appropriate. The chair of the Hearing Panel will determine all procedural and evidentiary matters, including the admissibility and relevance of any evidence proffered. Legal counsel, other than the Chief Regulatory Officer, will provide guidance to the chair of the Hearing Panel on the conduct of the hearing. At the hearing, the Hearing Panel or the Compliance Department and each Respondent may:

      1. present evidence and facts determined relevant and admissible by the chair of the Hearing Panel;

      2. call and examine witnesses; and

      3. cross-examine witnesses called by other parties.

   7. If the Respondent fails to file an answer, has filed a general denial, or if any or all of the allegations in the notice of charges are not expressly denied in the Respondent's answer, the chair of the Hearing Panel may limit evidence concerning any allegations not expressly denied in determining the sanctions to impose. If a Respondent fails to file an answer but appears at the hearing, the Respondent may not participate in the hearing (by calling or cross-examining witnesses, testifying in defense, presenting evidence concerning the notice of charges, or otherwise) unless the Hearing Panel determines that the Respondent had a compelling reason for failing to timely file an answer. If the Hearing Panel determines that the Respondent had a compelling reason for failing to timely file an answer, the Hearing Panel will adjourn the hearing and direct the Respondent to promptly file a written answer.

   8. Reasonable notice, confirmed in writing, specifying the date, time, and place of the hearing will be given to persons entitled or required to appear before the Hearing Panel. The Hearing Panel may impose sanctions on any person that impedes or delays the progress of the hearing. Interlocutory appeals of rulings by the Hearing Panel or the chair of the Hearing Panel are not permitted.

   9. If the Respondent is found to have violated one or more Rules, the written decision shall state the disciplinary action to be taken by the Exchange as well as the effective date thereof. The Hearing Panel may in such a case:

      1. issue a warning letter;

      2. issue a cease and desist order;

      3. suspend the Participant's or Clearing Member's rights to engage in Exchange Transactions;

      4. expel the Participant or Clearing Member from the Exchange or Clearinghouse; and/or

      5. impose any other sanction deemed appropriate under the circumstances.

   All decisions will be subject to CFTC Rules 38.708(a)-(f).

   10. The Respondent may appeal the Hearing Panel decision within fourteen (14) days of receiving the order by filing a written notice of appeal pursuant to Rule 604. The order of the Hearing Panel's decision will become final upon expiration of fourteen (14) days after the order is served on the Respondent.

9. Settlement. At any time prior to the issuance of the written decision of the Hearing Panel, the Respondent may submit an offer of settlement to the Compliance Department for review. The Disciplinary Committee will determine whether to accept or reject the offer and forward the basis for its recommendation to the Hearing Panel for final determination. If the Hearing Panel agrees, the Chief Regulatory Officer will conditionally accept the settlement offer, which will become final upon the expiration of fourteen (14) days after the order of the Hearing Panel consistent with the terms of the settlement offer is served on the Respondent. The offer of settlement must detail the rule violations, including the basis for the Hearing Panel's conclusions and any sanction to be imposed, which must include full customer restitution where customer harm is demonstrated. If applicable, the decision must also include a statement that the Respondent has accepted the sanctions imposed without either admitting or denying the rule violations. The acceptance of a settlement offer and the related final order by the Hearing Panel constitutes a waiver of the Respondent's right to notice, opportunity for a hearing and review, and appeal under Exchange or Clearinghouse Rules. If the settlement offer is not accepted, fails to become final, or is withdrawn by the Respondent, the matter will proceed as if the offer had not been made and the offer and all documents related to it will not become part of the record.

10. Sanctions. After notice and opportunity for hearing in accordance with Exchange or Clearinghouse Rules, the Exchange will impose sanctions if any Participant, Authorized User, Clearing Member, or Person using any of the Participant's or Clearing Member's User IDs, or Customer is found to have violated or to have attempted to violate a Rule of the Exchange or Clearinghouse or provision of applicable law for which the Exchange or Clearinghouse possess disciplinary jurisdiction. All sanctions must take into account the Respondent's disciplinary history. In the event of demonstrated customer harm, any sanction must also include full customer restitution. The Exchange may impose one or more of the following sanctions or remedies:

    1. censure;

    2. limitation or restriction on trading privileges, access to the Exchange or Clearinghouse and other activities, functions or operations;

    3. suspension of trading privileges and access the Exchange or Clearinghouse;

    4. fine;

    5. restitution;

    6. disgorgement;

    7. termination of trading privileges and access the Exchange or Clearinghouse; or

    8. any other sanction or remedy deemed to be appropriate.

    The Exchange may impose a fine of up to $1,000,000 for each violation of Exchange or Clearinghouse Rules or a provision of applicable law. If a fine or other amount is not paid within 30 days of the date that it becomes payable, then interest will accrue on the sum from the date that it became payable at the quoted prime rate plus three percent. The Exchange has sole discretion to select the bank on whose quotations to base the prime rate. Participants and Clearing Members will be responsible for paying any fine or other amount imposed on, but not paid by, any of its traders, supervisors, or Customers.

1. Summary Suspensions: At any time, the Chief Regulatory Officer, in consultation with the Regulatory Oversight Committee of the Board, may summarily suspend, revoke, limit, or condition a Participant's or Clearing Member's privileges on the Exchange or Clearinghouse. The Chief Regulatory Officer must reasonably believe that the business, conduct or activities of the Participant or Clearing Member in question is not in the best interest of the Exchange, the Clearinghouse, or the marketplace, based on relevant circumstances including (but not limited to) any of the following reasons:

   1. failure to satisfy applicable requirements under the CEA and/or the rules of the CFTC;

   2. failure to pay fees or fines or arbitration awards; and/or

   3. there is a reasonable basis for believing the best interest of the public, the Exchange, or the Clearinghouse is at risk and immediate action is necessary.

2. Notice of Suspension: Any Participant or Clearing Member that is suspended by the Chief Executive Officer as a result of a summary action is to be notified at the earliest possible opportunity as appropriate considering the best interest of the marketplace. Such notice shall state:

   1. the exact action taken,

   2. the reasons for the action, and

   3. the time and date the action has or is to become effective as well as the duration of the action.

   The Respondent may file a notice of appeal filed pursuant to Rule 604 seeking reinstatement within fourteen (14) days after the notice of action is served on the Respondent. Otherwise, the summary action becomes final fourteen (14) days after the notice of action is served on the Respondent. The Respondent shall have the right to be represented by legal counsel in all proceedings subsequent to summary action taken pursuant to Rule 604.

3. Summary Imposition of Fines: The Compliance Department may summarily impose a fine, no less than $1,000 and no more than $15,000 for each violation, against any Participant or Clearing Member for:

   1. failure to cooperate with the Compliance Department as required by Exchange or Clearinghouse Rules;

   2. failure to make timely and accurate submissions to the Exchange of notices, reports or other information required by Exchange or Clearinghouse Rules;

   3. failure to keep any books and records required by Exchange or Clearinghouse Rules.

4. Notice of Fines: The Compliance Department will give notice of any fine imposed that will specify:

   1. the violation of the Exchange or Clearinghouse Rule for which the fine is being imposed;

   2. the date of the violation for which the fine is being imposed; and

   3. the amount of the fine.

   Within 14 days of the service of the notice of the fine imposed, the Participant or Clearing Member may either pay the fine or file a notice of appeal pursuant to Rule 605.1. Unless timely notice of appeal is filed, the fine will become final upon expiration of 14 days after the notice of fine is served on the Participant or Clearing Member. The Respondent shall have the right to be represented by legal counsel in all proceedings subsequent to summary action taken pursuant to Rule 604.

5. Summary Fine Schedule: The following is a list of the rule violations subject to, and the applicable fines that may be imposed by the Exchange pursuant, this Rule 604:

   1. Failure to Comply with Minimum Financial Requirements, Financial Reporting Requirements, and Requirements Relating to Protection of Customer Funds (Rule 304.1- Rule 304.18)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$7,500

      • Third Offense..............................$15,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   2. Failure to Comply with Notice Provisions for Position Accountability. (Rule 406.1)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$7,500

      • Third Offense..............................$15,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   3. Failure to Comply with Reporting Requirements for Ownership and Control Reports and Reportable Positions. (Rule 407.1-Rule 407.3)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$7,500

      • Third Offense..............................$15,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   4. Failure to Enter Valid Orders. (Rule 504.1)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$2,500

      • Third Offense..............................$10,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   5. Failure to Comply with Block Trade Requirements. (Rule 505.2-Rule 505.4)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$2,500

      • Subsequent Offenses.....................$10,000

   6. Failure to Maintain Audit Trail Information. (Rule 510.1-Rule 510.3)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$2,500

      • Third Offense..............................$10,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   7. Failure to Submit Correct Customer Type Indicator codes. (Rule 511)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................Letter of Caution

      • Second Offense...........................$2,500

      • Third Offense..............................$10,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   8. Failure to Cooperate with the Compliance Department; Failure to Provide Records Within Designated Time Frame. (Rule 603.1)

      Number of Business Days Beyond Due Date of Request

      • Up Until 15 Business Days................$1,000

      • Subsequent Offenses...................Referral to Disciplinary Committee

   9. Failure to Properly Deliver. (Rule 1105.1; Rule 1105.2)

      Number of Cumulative Violations in Any Twelve (12) Month Rolling Period

      • First Offense..............................$5,000

      • Subsequent Offenses................... Referral to Disciplinary Committee

1. Appeal Procedures: A Respondent found by the Hearing Panel to have violated an Exchange or Clearinghouse Rule or applicable law or who is subject to any summary action imposed pursuant to Rule 604 may appeal the decision within fourteen (14) days of receiving the order of the Hearing Panel decision or notice of summary action by filing a notice of appeal with the Chief Regulatory Officer. Except for summary suspensions imposed pursuant to Rule 604.1 and Rule 604.2, Hearing Panel decisions and summary imposition of fines shall be suspended while the appeal is pending.

   The notice of appeal must state in writing the grounds for appeal, including the findings of fact, conclusions or sanctions to which the Respondent objects. The Respondent may give notice of appeal on the grounds that:

   1. the order or decision was arbitrary, capricious, an abuse of discretion, or not in accordance with Exchange or Clearinghouse Rules;

   2. the order or decision exceeded the authority or jurisdiction of the Hearing Panel, the Disciplinary Committee, the Exchange, or the Clearinghouse;

   3. the order or decision failed to observe required procedures;

   4. the order or decision was unsupported by the facts or evidence; or

   5. the imposed sanctions, remedies or costs are inappropriate or unsupported by the record.

   The Chief Regulatory Officer will forward copies of any notice of appeal received by it to all parties to the disciplinary proceeding or summary action, as the case may be, except the appellant. On or before the 14th day after filing a notice of appeal, the appellant must file with the Chief Regulatory Officer and serve on the Compliance Department a brief supporting the notice of appeal and documents supporting the brief. On or before the 14th day after the date on which the appellant serves supporting brief, the appellee must file and serve its brief in opposition with the Compliance Department.

   Within 30 days after the last submission filed, the Board will appoint a Board of Appeals at the recommendation of the Chief Regulatory Officer, which shall be composed of not less than three individuals from among Participants and Clearing Members (consisting of one Public Director, one representative of the brokerage community and one representative of the trading community), and/or other Person with knowledge and experience in the financial markets, who did not participate in any prior stage of the disciplinary proceeding. No member may serve on the Board of Appeals if such person or any person or firm with whom such person is affiliated has a financial, personal, or other direct interest in the matter. The individuals on the Board of Appeals will serve until the related proceedings are completed. The chair of the Board of Appeals will be an individual qualified to be a Public Director.

2. Review by the Board of Appeals: The Board of Appeals will hold a hearing to allow parties to present oral arguments. Except for good cause shown, the review by the Board of Appeals shall only consider the record before the Disciplinary Committee, the written exceptions filed by the parties, and the oral and written arguments of the parties.

   Upon completing its review, the Board of Appeals may affirm, modify or reverse the Hearing Panel decision or summary action under appeal. Modifications by the Board of Appeals may include increasing, decreasing or eliminating any sanction or remedy imposed, imposing any other sanction or remedy authorized by Exchange or Clearinghouse Rules, remanding the matter to the same or a different Hearing Panel for further disciplinary proceedings, or ordering a new hearing.

   As promptly as reasonably possible following its review, the Board of Appeals will issue a written decision based on the weight of the evidence before the Board of Appeals. The decision of the Board of Appeals will include a statement of findings of fact and conclusions for each finding, sanction, remedy and cost reviewed on appeal, including each specific Exchange or Clearinghouse Rule and provision of applicable law that the Respondent is found to have violated, if any, and the imposition of sanctions, remedies and costs, if any, and the effective date of each sanction, remedy or cost. The order by the Board of Appeals will be the final action of the Exchange and will not be subject to further appeal within the Exchange.

1. When the Participant's or Clearing Member's right to access the Exchange or Clearinghouse, or the association of an Authorized User with a Participant, is suspended for a period of 12 months or less, none of its rights (including the right to hold oneself out to the public as a Participant or Clearing Member; enter orders into the Exchange; clear trades through the Clearinghouse, and receive Participant rates for fees, costs, and charges) will apply during the period of the suspension, except for the right of the Participant, Authorized User or Clearing Member in question to assert claims against others as provided in the Rules. Any such suspension will not affect the rights of creditors under the Rules or relieve the Participant, Authorized User or Clearing Member in question of its, his, or her obligations under the Rules to perform any Transactions entered into before the suspension, or for any Exchange or Clearinghouse fees, costs, or charges incurred during the suspension. The Exchange may discipline a suspended Participant or Authorized User or Clearing Member under this Chapter 6 for any violation of Applicable Law committed by the Participant or Clearing Member before, during, or after the suspension.

2. When the Participant's or Clearing Member's right to access the Exchange or Clearinghouse, or the association of an Authorized User with a Participant, is terminated, all of its rights will terminate, except for the right of the Participant or Authorized User or Clearing Member in question to assert claims against others, as provided in the Rules. Any such termination will not affect the rights of creditors under the Rules. A terminated Participant, Authorized User or Clearing Member may only seek to reinstate its right to access the Exchange or Clearinghouse by filing an application in accordance with Chapter 3 of the Rules. The Exchange and Clearinghouse will not consider the application of a terminated Participant, Authorized User or Clearing Member if such Participant or Authorized User continues to fail to appear at Disciplinary Actions without good cause, or continues to impede the progress of Disciplinary Actions.

3. A suspended or terminated Participant, Authorized User or Clearing Member remains subject to the Rules and the jurisdiction of the Exchange and Clearinghouse for acts and omissions prior to the suspension of termination, and must cooperate in any inquiry, investigation, Disciplinary Actions, appeal of Disciplinary Actions, summary suspension, or other summary action as if the suspended or terminated Participant, Authorized User or Clearing Member still had the right to access the Exchange or Clearinghouse, or was still associated with a Participant or Clearing Member, as the case may be.

The Exchange will provide written notice of Disciplinary Actions to the parties and the CFTC consistent with CFTC Rules. Whenever the Exchange suspends, expels, fines, or otherwise disciplines, or denies any Person access to the Exchange or Clearinghouse, the Exchange will make the public disclosures required by CFTC Rules.