NYSE Arca Updates Disciplinary Procedure Rules
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NYSE Arca is changing parts of its disciplinary procedure rules to match recent FINRA updates. The changes mainly affect how certain serious disciplinary decisions, such as expulsions, membership cancellations, and denials of continued membership, are handled while SEC review may be available. For permit holders, members, applicants, and firms facing disciplinary action, the practical effect is procedural. Some decisions would be automatically paused to allow SEC review, and Exchange staff or adjudicators would have clearer authority to let affected parties seek a stay or take other procedural steps.
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Key Changes
- Automatically stays certain expulsions, membership cancellations, and denials of continued membership so SEC review can occur.
- Aligns NYSE Arca disciplinary rules with recent FINRA disciplinary rule changes.
- Gives Exchange staff and adjudicators clearer authority to allow respondents and applicants to seek a stay or take related procedural steps.
Obligations
What this law requires
NYSE Arca must apply amended Rule 10.8000 and Rule 10.9000 disciplinary procedures harmonized with recent FINRA disciplinary-rule changes when handling disciplinary matters.
NYSE Arca disciplinary decision-makers must treat certain serious disciplinary decisions, including expulsions, membership cancellations, and denials of continued membership, as procedurally paused where SEC review may be available.
Permit holders, members, applicants, and firms subject to affected disciplinary decisions should use the Exchange disciplinary procedures to seek a stay or other available procedural relief during the SEC review period, where applicable.