1 2 3 4 5 6 7 8 9 10 11 14 "(1) any act or practice in which such member or person associated with such member may be found to have engaged, or any required act or practice which such member or person associated with such member may be found to have omitted; "(2) the specific rule or rules of the exchange or provisions of this title or rules or regulations thereunder which any such act or practice, or omission to act, is deemed to violate; and "(3) the sanction or penalty imposed and the reasons for that sanction or penalty. 12 Such statement shall be publicly noticed in accordance with 13 such procedures as the Commission shall, by rule, specify 14 which rule shall, as a minimum, require that such statement 15 be sent to all members of such exchange and be published 16 in a manner reasonably designed to provide investors with 17 notice of such disciplinary action. 18 66 (g) In any proceeding to determine whether a person 19 shall be denied membership, rules of a national securities 20 exchange registered under this section shall provide that the 21 applicant for membership shall be notified of, and be given an 22 opportunity to be heard upon, the specific grounds for denial 23 which are under consideration; and that a record be kept. A 24 determination to deny membership shall be supported by a 3 4 "(h) (1) If any registered national securities exchange takes any disciplinary action against or concludes disciplinary 5 proceedings with respect to any member thereof, or any per 6 10 son associated with a member, or denies admission to any 7 person seeking membership therein, the exchange shall S promptly notify the Commission. Such action or proceed9 ings shall be subject to review by the Commission, on its own motion, or upon application by any person aggrieved 11 thereby filed within thirty days after notice of such action 12 has been received by the Commission or within such longer 13 period as the Commission may determine. The Commission 14 may, upon the application of an aggrieved party for review or upon the initiation of review by the Commission on its 15 16 own motion, order a stay of such disciplinary action pending 17 completion of the review proceeding. 18 "(i) (1) In a proceeding to review disciplinary pro19 ceedings of a national securities exchange registered under 20 this section with respect to a member or any person asso21 ciated with a member, after notice and opportunity for 22 hearing 22 23 "(A) if the Commission finds that such member or such person has engaged in such acts or practices, or has omitted such acts, as the exchange has charged 16 1 2 3 4 5 6 7 8 9 10 11 12 12 133 or has found him to have engaged in or to have omitted, and determines that such acts or practices, or omission to act, are in violation of the provisions of this title, or the rules adopted thereunder, or the rules of the exchange as have been designated in the determination of the exchange, it shall by order so declare and affirm the action taken by the exchange or, if appropriate, modify the sanctions or penalties in accordance with paragraph (2) of this subsection; or "(B) if the Commission finds that such person has not engaged in such acts or practices, or has not omitted such acts, as the exchange has charged or has found him to have engaged in or to have omitted, or that such 14 acts or practices are not prohibited by the designated 15 16 17 18 19 20 21 provisions of this title, or the rules adopted thereunder, or by the designated rule or rules of the exchange or that such act is alleged or found to have been omitted is not required by such designated provisions, rule, or rules, the Commission shall by order so declare and set aside the action of the exchange. "(2) If the Commission, having due regard for the 22 public interest, finds that the disposition of the proceedings 23 before the exchange with respect to sanctions or penalties 24 against a member or person associated with a member is in25 appropriate, the Commission may, by order, cancel, reduce, 17 1 require the remission, increase, broaden the scope of or other 2 wise require the modification of such sanction or penalty, 3 4 or require the imposition of a different sanction or penalty. "(j) In any proceeding to review the denial of mem5 bership in a registered national securities exchange, if the 6 Commission, after appropriate notice and opportunity for 7 hearing, (A) finds that the specific grounds on which such 8 denial or bar is based exist in fact and are valid under this section, it shall by order so declare and affirm the exchange's 10 action; or (B) finds that the specific grounds do not exist or are invalid under the section, the Commission shall by 12 order so declared and set aside the action of the exchange and 13 require it to admit the applicant to membership. 9 11 14 "(k) National securities exchanges registered under this 15 section, with the concurrence of the Commission, may, with 16 respect to any person who is a member of more than one 17 exchange, agree to share the costs, functions, and the responsi18 bility for the conduct of examinations and inspections of 19 such member. 20 "(1) A registered national securities exchange shall 21 furnish copies of any reports of inspections or examinations of its members to any other national securities exchange or national securities association of which such member is a 23 24 member upon the request of such member, exchange, or 25 association, or upon the request of the Commission. 18 1 "(m) A registered national securities exchange shall 2 permit any broker or dealer registered under this title to 3 become a member of such exchange; except that, any ex4 change may “(1) deny membership to any person who has been expelled or suspended from membership in any other exchange or any registered national securities association during the period of such expulsion or suspension; "(2) with the approval of the Commission, deny membership to any person on those grounds set forth in section 15 of this title upon which such person may be denied registration under that section; "(3) condition membership on the member's meeting financial responsibility requirements which are additional to those imposed by rules or regulations adopted pursuant to section 15 of this title and which the Commission determines are reasonable and consistent with the purposes of this title and with the public interest; and "(4) condition membership on the member's meet ing competency requirements which are additional to 22 those imposed by rules or regulations adopted pursuant 2 2 2 2 2 23 21 25 to section 15 (b) (8) and which the Commission de termines are reasonable and consistent with the purposes of this title and with the public interest. |