§ 9.21(a) may petition the Commission to stay the disciplinary or other adverse action, pending consideration by the Commission of the application for review and, if granted, the appeal underlying the application. A petition

filed under this section shall state the reasons that the stay is requested and the facts relied upon, and if the facts are subject to dispute, the petition shall be supported by affidavits or other sworn statements or copies thereof. The petition must also include a certification showing that a true copy of the petition has been served on the exchange involved concurrent with the filing of the petition with the Commission. Based upon the petition, the Commission, in its discretion, may order a stay of the disciplinary or other adverse action.

(b) An exchange may serve and file a written response to any petition for a stay within ten (10) days after service of the petition. However, if a petition for a stay involves a disciplinary action taken pursuant to § 9.13(a)(1) or other disciplinary or other adverse action which is to become effective before the ten-day period for filing a response expires, the petition may be acted upon by the Commission at any time, without waiting for a response thereto. An exchange may, however, ■ request reconsideration, vacation or modification of a stay granted.

§9.23 Answer.

Within twenty (20) days after receipt of an application, served in accordance with § 9.21(c), the exchange ■ may, at its election, file an answer = with the Commission, setting forth facts which support the disciplinary action or other adverse action taken by the exchange, and a statement expressing why, notwithstanding the

- claims made in the application, the disciplinary action or other adverse action by the exchange is in accordance with the rules of the exchange and the policies of the Act. If an answer is filed, it shall be accompanied by certification showing that a true copy of the answer has been served upon the applicant. If no answer is filed by the exchange in the case of an application to review disciplinary action of the exchange, the notice of

the disciplinary action filed with the Commission under §9.11 shall be deemed the exchange's answer to the application.

Subpart D-Commission Review of Disciplinary Action or Other Adverse Action Initiated by Application

§ 9.30 Determination to review exchange action.

The determination to review any exchange disciplinary or other adverse action is a matter committed to the Commission's discretion. In determining whether to grant or deny review of any exchange disciplinary or other adverse action, the Commission may consider such factors as:

(a) Whether the issues presented involve an important policy under the Act;

(b) The extent to which a review proceeding would interfere with the efficient disposition of other Commission business;

(c) The precedential value of a Commission decision on the issues presented;

(d) Whether there is substantial divergence among the exchanges in their treatment of similar matters;

(e) Whether it appears from the application or other information available to the Commission that the exchange action may not have been taken in accordance with any of the standards contained in § 9.37(b); or

(f) Any other factors which the Commission deems relevant.

§ 9.31 Institution of review.

(a) If the Commission determines to deny the application for review of the disciplinary action or other adverse action, it shall promptly give notice to that effect to the exchange and to the applicant.

(b) If the Commission determines to grant the application for review, the Commission shall issue an order to institute a review of the disciplinary action or other adverse action.

§9.32 Docketing of the proceeding.

If the Commission institutes review pursuant to the provisions of § 9.31, 1

Son and shall advise him that he may request a bearing on such penaity within a reasonable period of time. wuch shall be stated in the notice, but that except for good cause shown no hearing shall be permitted on a penaita imposed pursuant to subparagraph (2/2/of time section

The rules of an exchange may provide that if a respondent falis to reGuest a hearing within the period of Lime stated in the notice he shall be deemed to have accepted the penalty,

§8.15 Denial of charges and right to hearang

In every instance where the respondent has requested a hearing on a charge which is denied, or on a penalty set by the disciplinary committee under $ 8.14(a/2), he shall be given an opportunity for a hearing in accordance with the requirements of $8.17. The exchange rules may provide that, except for good cause, the hearing shall be concerned only with those charges denied and/or penalties set by the disciplinary committee under §8.14(2/2) for which a hearing has been requested.

§8.16 Settlement offers.

(a) The rules of an exchange may permit a respondent to submit a written offer of settlement to the discip.inary committee at any time after the investigation report is completed. The disciplinary committee may accept the offer of settlement, but may not alter its terms unless the respondent agrees.

(b) The rules of an exchange may provide that the disciplinary committee, in its discretion, may permit the respondent to accept a penalty without either admitting or denying the rule violations upon which the penalty is based.

(c) If an offer of setlement is accepted by the disciplinary committee, it shall issue a written decision specifying the rule violations it has reason to believe were committed and any penalty to be imposed. Where applicable, the decision shall also include a statement that the respondent has accepted the penalties imposed without either admitting or denying the rule violations.

(d) The respondent may wi his offer of settlement ata before final acceptance by the dist plinary committee. If an offer is drawn after submission, or IE TERCE by the disciplinary committee, the re spondent shall not be deemed to haw made any admissions by reason 一 offer of settlement and shal otherwise prejudiced by having su mitted the offer of settlement.

$8.17 Hearing.

(a) The following minimum requi ments shall apply to any hearing te quired by this subpart:

(1) The hearing shall be fair and shall be conducted before members a the disciplinary committee. The hear ing may be conducted before al of the members of the disciplinary commstee or a panel thereof, but no member of the disciplinary committee may serve on the committee or panel if he or any person or firm with which he is affiliated has a financial, personal or other direct interest in the matter under consideration.

(2) The respondent shall be entitled in advance of the hearing to examine all books, documents, or other tangibie evidence in the possession or under the control of the exchange which are to be relied upon by the enforcement staff in presenting the charges con tained in the notice of charges or which are relevant to those charges.

(3) The hearing shall be promptly convened after reasonable notice to the respondent.

(4) The formal rules of evidence need not apply; nevertheless, the procedures for the hearing may not be so informal as to deny a fair hearing.

(5) The enforcement staff shall be a party to the hearing and shall present its case on those charges and penalties which are the subject of the hearing.

(6) The respondent shall be entitled to appear personally at the hearing.

(7) The respondent shall be entitled to cross-examine any persons appearing as witnesses at the hearing.

(8) The respondent shall be entitled to call witnesses and to present such evidence as may be relevant to the charges.

(9) The exchange shall require persons within its jurisdiction who are

to

- called as witnesses to appear at the hearing and to produce evidence. It ■ shall make reasonable efforts ■ secure the presence of all other per■sons called as witnesses whose testimo■ny would be relevant.

(10) If the respondent has requested ✓ a hearing, a substantially verbatim - record of the hearing shall be made and shall become a part of the record of the proceeding. The record must be one that is capable of being accurately transcribed; however, it need not be transcribed unless the transcript is re✓quested by Commission staff or the respondent, the decision is appealed under § 8.19, or is reviewed by the ✔Commission pursuant to section 8c of the Act or Part 9 of this chapter. In all other instances a summary record of a - hearing is permitted.

(i) The rules of an exchange may ✓ provide that the cost of transcribing the record of the hearing shall be borne by a respondent who requests the transcript, appeals the decision pursuant to § 8.19, or whose applica

tion for Commission review of the disciplinary action has been granted under Part 9 of this chapter. In all other instances, the cost of transcribing the record shall be borne by the exchange.

(b) The rules of an exchange may provide that a penalty may be summarily imposed upon any person within its jurisdiction whose actions impede the progress of a hearing.

$8.18 Decision.

Promptly following a hearing conducted in accordance with § 8.17, the disciplinary committee shall render a written decision based upon the weight of the evidence contained in the record of the proceeding and shall provide a copy to the respondent. The decision shall include:

(a) The notice of charges or a summary of the charges;

(b) The answer, if any, or a summary of the answer;

(c) A brief summary of the evidence produced at the hearing or, where appropriate, incorporation by reference of the investigation report;

(d) A statement of findings and conpe clusions with respect to each charge, 2 including the specific rules which the

respondent is found to have violated; and

(e) A declaration of any penalty imposed and the effective date of such penalty.

§ 8.19 Appeal.

The rules of an exchange may permit a respondent to appeal promptly an adverse decision of a disciplinary committee in all or in certain classes of cases. Such rules may require a respondent's notice of appeal to be in writing and to specify the findings, conclusions, and/or penalty to which objection is taken. If the rules of an exchange permit appeal, they shall provide for the following:

(a) The exchange shall establish a board of appeals which shall be authorized to hear appeals of respondents. In addition, the rules of an exchange may provide that the board of appeals may, on its own initiative, order review of a decision by the disciplinary committee within a reasonable period of time after the decision has been rendered.

(b) No member of the board of appeals shall serve on an appeal or review panel if such member participated in any prior stage of the disciplinary proceeding or if he or any person or firm with which he is affiliated has a financial, personal, or other direct interest in the matter. The rules of an exchange may provide that the appeal or review proceeding may be conducted before all of the members of the board of appeals or a panel thereof. Except for good cause shown, the appeal or review shall be conducted solely on the record before the disciplinary committee, the written exceptions filed by the parties, and the oral or written arguments of the parties.

(c) Promptly following the appeal or review proceeding, the board of ap peals shall issue a written decision and shall provide a copy to the respondent. The decision shall include a statement of findings and conclusions with respect to each charge or penalty reviewed, including the specific rules which the respondent was found to have violated by the disciplinary committee, and a declaration of any penal

bpart D-Commission Review of Disciplinary or Other Adverse Action Initiated by Application

§ 9.2 Definitions.

For purposes of this part:

(a) "Disciplinary action" means the suspension, expulsion or other penalty imposed on a member of an exchange by that exchange or any action by an exchange which denies access to that exchange to any person; but does not include the imposition of a minor sanction against a person for violation of exchange rules of decorum, attire or similar rule.

(b) “Disciplinary proceeding" means any formal or informal proceeding by an exchange which results in a disciplinary action.

This part governs the review by the Commission, pursuant to Section 8c of the Commodity Exchange Act, as amended, of any suspension, expulsion, disciplinary or access denial action, or other adverse action by an exchange, upon application of a member of an exchange who is suspended, expelled, or otherwise disciplined or of any person who is denied access to an exchange or who is otherwise adversely affected by any other action of an exchange. Under Subpart E the Commission may also institute review of an exchange disciplinary action on its own motion.

Commission which, among other things, reviews notices of disciplinary action under this part.

(d) "Exchange" means any board of trade which has been designated as a contract market for one or more commodities pursuant to Section 5 of the Commodity Exchange Act.

(e) "Hearing Clerk" means the employee of the Commission designated as such in the Commission's Office of Hearings and Appeals.

(f) "Member of an exchange" means any person who is admitted to membership or has been granted membership privileges on an exchange, any employee, officer, partner, director or affiliate of such member or person with membership privileges including any agent or associated person, and any other person under the supervision or control of such member or person with membership privileges.

(g) "Party" means both the person who has been the subject of a disciplinary action or other adverse action by an exchange and that exchange.

(h) "Record of the exchange disciplinary proceeding or other adverse action" means all testimony, exhibits, papers and records produced at or filed in an exchange disciplinary proceeding or served on a party to that proceeding; all documents, minutes or other exchange records serving as a basis for or reflecting the deliberations concerning other adverse action taken by an exchange; and a transcript or recording of any oral argument made before any body of the exchange in connection with the disci