7 U.S.C. § 12c — Disciplinary actions

This section covers how exchanges discipline their own members, and how the Commission oversees that. (a) Taking action; written notice. (1) An exchange — or the Commission, if the exchange fails to act — may suspend, expel, or otherwise discipline a member, or deny someone access to the exchange. This must be done strictly following that exchange's own rules. (2) Any exchange procedure for suspension, expulsion, discipline, or access denial must require written notice, within thirty days, to both the Commission and the affected person, giving the reasons for the action in whatever form the Commission requires. The exchange must make its findings and reasons public, including the action taken or penalty imposed, but must not disclose the underlying evidence — except to the affected person and to the Commission. (b) Commission review. The Commission may, using whatever standards and procedures it thinks appropriate, review any exchange decision that suspends, expels, disciplines, or denies access to someone. It may also review any other exchange action, when a person hurt by it applies for review. (c) Affirming, changing, or reversing an exchange decision. After deciding on the record whether the exchange's action matched this chapter's policies, the Commission can affirm, modify, set aside, or send back any exchange decision it reviews. Subject to court review, a Commission order under (b) governs how the exchange handles the matter afterward. (d) Pausing an action. The Commission may, at its discretion, order a stay of any action taken under (a) while it reviews that action. (e) Major violations. (1) The Commission must issue rules requiring each registered entity to set up and publicly post a list of major rule violations within that entity's own disciplinary authority. (2) Those Commission rules must bar, for a period the Commission sets, anyone found to have committed a major violation from serving on the governing board of any registered entity or futures association, or on any of their disciplinary committees.