that except for good cause shown no hearing shall be permitted on a penalty imposed pursuant to subparagraph (a)(1) of this section. (c) The rules of an exchange may provide that if a respondent fails to request a hearing within the period of time stated in the notice he shall be deemed to have accepted the penalty. (Approved by the Office of Management and Budget under control number 30380022) [43 FR 41950, Sept. 19, 1978, as amended at 46 FR 63036, Dec. 30, 1981] § 8.14(a)(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 disciplinary 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 at a before final acceptance by the nary committee. If an offer drawn after submission, or . by the disciplinary commit spondent shall not be deer.: made any admissions by re offer of settlement and otherwise prejudiced by mitted the offer of settler (Approved by the Office and Budget under contro 0022) [43 FR 41950, Sept. 19, 19′′ 46 FR 63036, Dec. 30, 19817 § 8.17 Hearing. (a) The following mi ments shall apply to quired by this subpart (1) The hearing sh shall be conducted b the disciplinary com ing may be conducte members of the dis tee or a panel there of the disciplinary serve on the commit or any person or fir affiliated has a fir other direct inter under consideratio (2) The respond in advance of the all books, docume evidence in the the control of th to be relied upo staff in present tained in the which are releva (3) The heari convened after the respondent. (4) The form need not apply cedures for the ' informal as to de (5) The enforc party to the hes its case on those which are the s (6) The respo to appear perso (7) The respe to cross-examin ing as witnesses the e of the Spy w l inclue escription sons for Summary of bearing nclus or that? med (8) The respondent shal › call witnesses and vidence as may be harges. (9) The exchange shap alled as witnesses to (10) If the respondens ne that is capable re ranscribed; howe quested by Commiss he record of the within its (Approved and Budg 0022) [43 FR 4 46 FR 630 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 appeals 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 penalty imposed and the effective date of such penalty. (Approved by the Office of Management and 'Budget under control number 30380022) [43 FR 41950, Sept. 19, 1978, as amended at 46 FR 63036, Dec. 30, 1981] § 8.20 Final decision. Each exchange shall establish rules setting forth when a decision rendered pursuant to this Subpart B shall become the final decision of such exchange. Subpart C-Summary Actions § 8.25 Member responsibility actions. An exchange may suspend at any time, or take other summary action against, a person subject to its jurisdiction upon a reasonable belief that such immediate action is necessary to protect the best interest of the marketplace. § 8.26 Procedure for member responsibility actions. An action pursuant to § 8.25 shall be taken in accordance with an exchange procedure which provides for the following: (a) The respondent shall, whenever practicable, be served with a notice before the action is taken. If prior notice is not practicable, the respondent shall be served with a notice at the earliest possible opportunity. The notice shall: (1) State the action, (2) Briefly state the reasons for the action, and (3) State the effective time and date and the duration of the action. (b) The respondent shall have the right to be represented by legal counsel or any other representative of his choosing in all proceedings subsequent to the summary action taken pursuant to § 8.25. (c) The respondent shall promptly be given opportunity for a subsequent hearing. The hearing shall be fair and shall be held before one or more persons authorized by the exchange to conduct hearings pursuant to this section. The hearing shall be conducted in accordance with the requirements set forth in §§ 8.17(a)(4)-(9) and (b). (d) Promptly following the hearing provided for in paragraph (c) of this section, the exchange 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: (1) A description of the summary action taken, (2) The reasons for the summary action, (3) A brief summary of the evidence produced at the hearing, (4) Findings and conclusions, (5) A determination that the summary action should be affirmed, modified or reversed, and (6) A declaration of any action to be taken pursuant to the determination specified in paragraph (d)(5) of this section and the effective date and duration of such action. (e) The rules of an exchange may permit the respondent to appeal promptly an adverse decision. Such rules shall be established in accordance with the requirements set forth in § 8.19. (Approved by the Office of Management and Budget under control number 30380022) [43 FR 41950, Sept. 19, 1978, as amended at 46 FR 63036, Dec. 30, 1981] § 8.27 Violations of rules regarding decorum, submission of records or other similar activities. An exchange may adopt rules which permit the enforcement staff or a designated committee of officials to sum SOURCE: 43 FR 59350, Dec. 20, 1978, unless otherwise noted. Subpart A-General Provisions § 9.1 Scope of rules. 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. § 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. (c) "Division of Trading and Markets" means that division within the 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 Act or to trade commodity options pursuant to Part 33 of this chapter. (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 disciplinary proceeding or other adverse action. (i) "Rules of an exchange" means any constitutional provision, article of incorporation, bylaw, rule, regulation, resolution, interpretation, or stated policy of an exchange or instrument corresponding thereto. (j) "Rules of Practice" mean the Commission's Rules of Practice contained in Part 10 of this chapter. [43 FR 59350, Dec. 20, 1978, as amended at 46 FR 54525, Nov. 3, 1981] Filing), § 10.7 (Date of Entry of Orders), § 10.10 (Ex Parte Communications), § 10.11 (Appearance in Adjudicatory Proceedings), § 10.12 (a), (b), (c), (d), (e)(1)-(e)(4), (e)(6), (f) and (g) (Service and Filing of Documents; Form and Execution) and such other sections of the rules of practice as the Commission shall declare to be applicable during a proceeding under this part. For purposes of this part, functions assigned by the rules of practice to an "Admininstrative Law Judge" At any time before there has been a final determination by the Commis sion of any review proceeding sought or initiated under this part, the par ties may propose offers of settlement. All offers of settlement shall be in writing and shall be filed with the Commission. All offers of settlement shall: (a) Acknowledge service of the order instituting review, (b) Admit the jurisdiction of the Commission with respect to the mat ters stated in the order, (c) Include a waiver of (1) all subse quent procedures in the proceeding (2) judicial review, and (3) any objec tion to staff participation in the Com mission's consideration of the offer, (d) Stipulate the record basis on which an order may be entered, and (e) Consent to the entry of an order reflecting the terms of the settlement agreed upon. The Commission will issue an order based on the settlement which will ter minate the proceeding before the Commission as to all parties. Notwith standing the entry of such an order. the Commission may undertake review of the exchange action on its own motion. (Approved by the Office of Management and Budget under control number 30380022) [43 FR 59350, Dec. 20, 1978, as amended a 46 FR 63036, Dec. 30, 1981] § 9.6 Waiver of rules. (a) To prevent undue hardship on any party or for other good cause the Commission may waive any rule in |