2.7 Suspension and Expulsion

2.7.1           The Directors may, upon the recommendation of the Compliance Committee under Rule 5 (Disciplinary) or in the exercise of any other power conferred on the Directors by the Rules:

a.   expel a Member from membership of the Exchange (or any part of the Market) or, in the case of other persons subject to the Rules, permanently remove their right to access the Cleartrade Platform; or

b.   in the case of a Member, suspend any or all of the membership permissions of the Member including its permission to trade on the Cleartrade Platform (or any part of it).

 The Directors may on request give the person subject to the Rules a brief account of reasons for his action.

 

2.7.2           If a Member fails to satisfy the requirements of Rule 2 or fails to comply with the terms of the Electronic User Agreement, the Directors may suspend any or all membership permissions of that Member including its permission to trade on the Market (or any part of it).

 

If a Member:

a.   suspends payment of its debts;

b.   is unable to pay its debts when due;

c.   calls a meeting of its creditors;

d.   (in relation to a partnership) has a bankruptcy, administration or winding-up petition presented against any and/or all of the partners;

e.   (in the case of a firm or company) has an administrative receiver or administrator or similar officer appointed of all or any of its assets or go into liquidation (except a voluntary liquidation for the purposes of amalgamation or reconstruction);

f.   fails to comply with relevant Applicable Requirements under Rule 2, in particular, if any change to the Member required under Rule 2 to be notified to the Exchange and approved by the Directors becomes effective before being approved by the Directors;

g.   be declared a defaulter under the default rules;

h.   ceases operations or business or has its license, approval or exemption suspended, revoked or terminated; and/or

i.   an analogous event occurs in respect of the Member under the laws of any other jurisdiction;

 

then its membership permissions (including trading permissions and its permission to accept allocation of any Contracts made on the Market by another Member and to clear Contracts (as applicable)) shall be suspended (without any prior decision of the Directors being required but subject to any contrary determination under the default rules) or at the discretion of the Directors shall be terminated from the date of such occurrence, save that where the Member is declared a defaulter under the default rules, its membership shall continue until the completion of default proceedings (within the meaning of such rules).

 

2.7.3           The Member whose membership is suspended may apply to the Directors to reinstate its membership provided that the Directors are satisfied that the reasons for suspension have been discharged or extinguished and all other membership criteria can be fulfilled by the said Member.

 

2.7.4           A Member whose permissions are suspended shall remain liable in respect of all its obligations of membership including, without limitation, its obligation to pay an annual subscription, license fee or any other fees, levies or charges in respect of the relevant category of membership and its obligations in respect of any steps taken with regard to him under the default rules. A Member whose trading permissions have been suspended under this Rule 2 shall not, during the period of such suspension, be entitled to execute new Contracts, subject to any contrary determination under the default rules.

 

2.7.5           Upon the expulsion of a Member or cessation of membership taking effect it shall forfeit all rights and privileges of membership of the Exchange including its trading permissions.

 

2.7.6           Where, upon the suspension of a Member’s rights of membership under Rule 2, the Member is not declared a defaulter under and within the meaning of the default rules, any other Member holding open positions on the Market on its behalf shall be entitled to close the same without prior notice. Where, upon the suspension of a Member’s permissions under Rule 2, the Member is declared a defaulter under and within the meaning of the default rules, any other Member holding on its behalf an open position on the Market which is not discharged under the default rules may, upon the completion of default proceedings (within the meaning of the default rules) in respect of the suspended Member, close such open position without prior notice.

 

2.7.7           Upon the expulsion of a Member or the suspension of its trading or broking permissions and/or its permission to accept the allocation of any Contracts made on the Market by another Member, the Exchange may give notice of the expulsion or suspension to all Members and to the Relevant Clearing House(s).

 

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