5.11 Summary Enforcement

5.11.1 Subject to paragraph (b) below, where in all the circumstances of a case the Compliance Committee considers summary enforcement of the Rules to be apt it may, summarily hear and determine the case itself. Any matter which financial penalty or impact to Cleartrade would be less than US$50,000 can be summarily dealt with. The sanctions which may be imposed by the Compliance Committee are those set forth in Rule 5 above save that:

i. the sanction of expulsion shall not be available to the Committee;

ii. the maximum sanction of suspension which may be imposed by the Committee on an individual is limited to 3 calendar months; and

iii. the maximum fine which may be imposed by the Committee is limited to $100,000 for a Member in respect of each offence.

a. In the conduct of a summary hearing under this Rule the Compliance Committee shall conform to such procedures as may from time to time be prescribed for the purpose by the Directors. In connection with a summary hearing under this Rule the Compliance Committee may order any party to the proceedings to pay costs as it thinks appropriate, including but not limited to, administration costs, costs incurred in the investigation, preparation and presentation of the case.

b. Where an alleged infringement or misconduct falls outside those mentioned in Rule 5, before commencing a summary hearing under paragraph (a) above the Compliance Committee shall inform the Member or other person concerned that such person may object to summary enforcement. If the person concerned so objects, the case shall not proceed under this Rule but shall be referred to the Chairman.

c. A Member, or other person proceeded against, may appeal to the Chairman against a summary determination of the Compliance Committee under paragraph (a) above. Notice of appeal shall be lodged with the Exchange within 7 days of notification of the Committee’s determination. Rule 5 above shall apply to the proceedings of the Chairman, modified as the Committee may consider appropriate to the case. The determination of the Chairman on appeal from the Compliance Committee shall be final and binding. There shall be no further appeal.

5.11.2 Without prejudice to the powers of investigation and discipline contained in Rule 5, or to the summary jurisdiction of the Compliance Committee under Rule 5 above, an infringement or contravention of or a failure to observe or comply with any provision of the rules appearing in Rule 7 (Trading), or a failure to identify a customer on the part of a Member or a Member’s Representative, may be summarily dealt with under Rule 5 below.


5.11.3 The Directors and the Compliance Officer acting together or independently or such other persons as may be duly authorized by the Compliance Committee may take summary disciplinary measures, including without limitation the imposition fixed terms of exclusion from the Market (or any part thereof), in respect of any infringement, contravention or failure mentioned in Rule 5. The Directors, or the Compliance Officer acting together under the authority of the Compliance Committee, may from time to time by circular or other written notice to Members prescribe the procedure governing the taking of summary disciplinary measures under this Rule, any procedure for appeal and any other matter incidental thereto, including the limitation of summary measures either generally or in particular classes of case.


5.11.4 A failure to observe any sanction imposed under Rule 5 shall be treated as an infringement of the Rules.


5.11.5 Any summary decision of the Compliance Committee or the Compliance Officer may be posted on the Market and circulated to the compliance officer of Member firms.

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