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Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: exchangeinfo@nymex.com X-To: tana.jones@enron.com X-cc: X-bcc: X-Folder: \Tanya_Jones_June2001\Notes Folders\Notes inbox X-Origin: JONES-T X-FileName: tjones.nsf Notice No. 01-68 February 28, 2001 TO: All Exchange Members and Member Firms FROM: Neal L. Wolkoff, Executive Vice President RE: Implementation of Amendments to Exchange Disciplinary Rules to Permit=20 Restitution in Certain Cases ____________________________________________________________ Included below please find amendments that become effective today to NYMEX= =20 Rules 8.03 (=01&Settlements=018); 8.08 (=01&Settlement by the Adjudication= =20 Committee=018); 8.11 (=01&Decision=018) and 8.55 (=01&Classification of Off= enses=018). In=20 general, these rule amendments provide Exchange disciplinary committees,=20 including both NYMEX and COMEX Division disciplinary committees, with=20 explicit authority to include restitution as a sanction in a disciplinary= =20 matter where quantifiable customer harm has resulted from a rule violation. If you have any questions, please contact Nancy Minett, Compliance Counsel,= =20 Compliance Department, at (212) 299-2940. * * * * [Asterisks indicate additions; brackets indicate deletions.] Rule 8.03. SETTLEMENTS (A) When the Compliance Department concludes that a Rule violation has=20 occurred, and at any time prior to the submission of an Investigative Repor= t=20 to the Business Conduct Committee, the Compliance Department may negotiate= =20 with the Respondent and enter into a written Offer of Settlement with the= =20 Respondent. The Respondent may agree, without admitting or denying a Rule= =20 violation, to an Offer of Settlement which may provide for a cease and desi= st=20 order, a censure, ** an order directing restitution to any injured=20 person, ** and a fine of not more than $5,000 for each Rule violation=20 alleged, or any combination of such penalties. Any such settlement is=20 subject to the approval of the Business Conduct Committee. [Sections (B) and (C) remain unchanged.] (D) Any Offer of Settlement agreed to under Sub-Sections (B) or (C) of this= =20 Rule may provide for a cease and desist order, a censure, ** an order=20 directing restitution to any injured person,** a fine not to exceed $25,000= =20 for each Rule violation alleged, an expulsion or suspension from all or som= e=20 rights and privileges of membership, the ability to hold a permit, Electron= ic=20 Trading Privileges, employment on the Exchange Floor or employment for the= =20 purpose of entering orders on NYMEX ACCESS for a period not to exceed three= =20 (3) months for each Rule violation alleged, or any combination of such=20 penalties. [Section (E) remains unchanged.] Rule 8.08. SETTLEMENT BY THE ADJUDICATION COMMITTEE (A) If the Respondent wishes to settle a matter at any time after the filin= g=20 of the complaint with the Chairman of the Adjudication Committee, the=20 Respondent may submit a written settlement offer. The settlement offer wil= l=20 be directed to the NYMEX Division Hearing Panel or the COMEX Division Heari= ng=20 Panel, as applicable, that has not been assigned the case to hear and=20 decide. The Compliance Department may recommend to that Hearing Panel an= =20 approval or a rejection of any settlement offer. Such offer may provide fo= r=20 the issuance of a cease and desist order, a censure, ** an order directing= =20 restitution to any injured person, ** a fine not to exceed $250,000 for eac= h=20 violation alleged to have been committed, an expulsion or suspension from a= ll=20 or some rights and privileges of membership, the ability to hold a permit,= =20 electronic trading privileges, employment on the Exchange Floor, or=20 employment for the purposes of entering orders on NYMEX ACCESS or any=20 combination of such pen! al! ties. [The remainder of the Rule remains unchanged.} Rule 8.11 DECISION [Sections (A) through (J) remain unchanged.] (K) If the Hearing Panel determines to order the imposition of a penalty, t= he=20 penalties which may be imposed are any one or combination of the following:= =20 the issuance of a cease and desist order, a censure, ** an order directing= =20 restitution to any injured person, ** a fine of not more than $250,000 for= =20 each Rule violation found to have been committed, an expulsion or a=20 suspension from all or some rights and privileges of membership, the abilit= y=20 to hold a permit, Electronic Trading Privileges, employment on the Exchange= =20 Floor, or employment for the purposes of entering orders on NYMEX ACCESS. [The remainder of the Rule remains unchanged.] Rule 8.55. CLASSIFICATION OF OFFENSES Offenses against the Exchange shall be classified as major offenses and min= or=20 offenses. Major offenses shall be punishable by **one or more of the=20 following:** expulsion, suspension **from all or some rights and privileges= =20 of membership, the ability to hold a permit, Electronic Trading Privileges,= =20 employment on the Exchange Floor, or employment for the purposes of enterin= g=20 orders on NYMEX ACCESS,** a fine of not more than $250,000, **cease and=20 desist order, or an order directing restitution to any injured person.** = =20 [or by both suspension and fine]. Minor offenses shall be punishable by=20 **one or more of the following:** a fine of no more than $10,000 **cease a= nd=20 desist order, order directing restitution to any injured person** or=20 suspension for not more than one year ** from all or some rights and=20 privileges of membership, the ability to hold a permit, Electronic Trading= =20 Privileges, employment on the Exchange Floor, **or employment for the=20 purposes of entering orders on ! NY! MEX** ACCESS ** [; or both]. Unless good cause is shown, any offense=20 involving fraudulent or deceitful trading practices detrimental to a custom= er=01, s order shall be a Major Offense and shall be punishable, at a minimum, wit= h=20 a suspension or revocation of the Member=01,s or NYMEX ACCESS Operator=01,s= right=20 to execute customer orders. [The remainder of the rule remains the same.} __________________________________________________ Please click on the link below to indicate you have received this email. "http://208.206.41.61/email/email_log.cfm?useremail=3Dtana.jones@enron.com&= refdo c=3D(01-68)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.
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