§12c Disciplinary actions

Summary

Exchanges can suspend, expel, deny access to, or otherwise discipline their members. If an exchange does not act, the Commission can do so. Any action must follow the exchange’s own rules. When an exchange starts such a proceeding, it must give written notice to the Commission and to the person within 30 days that explains the reasons in the form the Commission requires. The exchange must publish its findings and the penalty, but it must not release the supporting evidence except to the person involved and to the Commission. The Commission may review any exchange decision like these, and may also review other exchange actions if someone affected asks. After review the Commission can confirm, change, cancel, or send the decision back for more work based on whether it follows the law’s policies. The Commission can pause an exchange action while it reviews it. The Commission must also make rules that require each registered entity to publish a list of major rule violations, and may bar anyone found to have committed a major violation from serving on a governing board or disciplinary committee for a period the Commission decides.