Summary Actions

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.

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.

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.

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.

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