[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR8.07]

[Page 215-216]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 8_EXCHANGE PROCEDURES FOR DISCIPLINARY, SUMMARY, AND MEMBERSHIP DENIAL 
 
                    Subpart B_Disciplinary Procedure
 
Sec.  8.07  Investigation reports.

    (a) The enforcement staff shall submit a written investigation 
report to the disciplinary committee of the exchange in every instance 
in which the enforcement staff has determined from surveillance or from 
an investigation that a reasonable basis exists for finding a violation. 
The investigation report shall include the reason the investigation was 
initiated, a summary of the complaint, if any, the relevant facts, the 
enforcement staff's conclusions and a recommendation as to whether the 
disciplinary committee should proceed with the matter.
    (b) If after conducting an investigation the enforcement staff has 
determined that no reasonable basis exists for finding a violation, it 
shall prepare a written report including the reason the investigation 
was initiated, a summary of the complaint, if any, the relevant facts, 
the enforcement staff's conclusions and, if applicable, any 
recommendation that the disciplinary committee issue a warning letter in 
accordance with paragraph (c) of this section. The report shall become 
part of the investigation file which thereafter may be closed.
    (c) In addition to the action required to be taken under either 
paragraph (a) or (b) of this section, the rules of an exchange may 
authorize the enforcement staff to issue a warning letter to a person 
under investigation or to recommend that the disciplinary committee 
issue such a letter. A warning letter issued in accordance with this 
section is not a penalty or an indication that a finding of a violation 
has been made. A copy of such warning letter issued by the enforcement 
staff shall be included in the investigation

[[Page 216]]

report required by paragraph (a) or (b) of this section.

(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]