[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR8.26]

[Page 218-219]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 8_EXCHANGE PROCEDURES FOR DISCIPLINARY, SUMMARY, AND MEMBERSHIP 
DENIAL ACTIONS--Table of Contents
 
                        Subpart C_Summary Actions
 
Sec.  8.26  Procedure for member responsibility actions.

    An action pursuant to Sec.  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 Sec.  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 Sec. Sec.  8.17(a)(4)-(9) and (b).

[[Page 219]]

    (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 Sec.  8.19.

(Approved by the Office of Management and Budget under control number 
3038-0022)

[43 FR 41950, Sept. 19, 1978, as amended at 46 FR 63036, Dec. 30, 1981]