MX2 simplifies voluntary membership termination process
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
MX2 would let members end their exchange membership more quickly by removing requirements that investigations, disciplinary matters, or examinations be completed before resignation takes effect. A member would still need to give written notice, complete required filings, and pay outstanding amounts owed to MX2, the SEC, or SIPC. The change mainly affects broker-dealers and firms that are MX2 members. It reduces the risk that a firm remains stuck with exchange membership obligations during routine exams or pending reviews, while MX2 keeps authority to pursue disciplinary matters for pre-termination conduct if it starts an inquiry within one year.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Removes the requirement to finish investigations or disciplinary matters before a member can resign.
- Removes the requirement to complete examinations and resolve exceptions before termination takes effect.
- Requires resigning members to complete required filings and pay outstanding amounts owed to MX2, the SEC, or SIPC.
Obligations
What this law requires
An MX2 member seeking to voluntarily terminate its exchange membership must provide written notice of resignation to MX2 before the termination can become effective.
An MX2 member seeking voluntary termination must complete any outstanding filings required under MX2 Rules, including applicable FINRA rules incorporated by reference, before the termination can become effective.
An MX2 member seeking voluntary termination must pay any outstanding fees, assessments, charges, fines, or other amounts due to MX2 before the termination can become effective.
An MX2 member seeking voluntary termination must pay any outstanding fees, assessments, charges, fines, or other amounts due to the SEC or SIPC before the termination can become effective.
Former MX2 members and former associated persons remain subject to MX2 disciplinary jurisdiction for matters that occurred before termination if MX2 gives written notice of the commencement of an inquiry within one year after receiving the latest written notice of termination.