Notice to Commission by security-based swap execution facility of final disciplinary action or denial or limitation of access.
17 C.F.R. § 242.835
in effectEffective: 2024-07-01(a) If a security-based swap execution facility issues a final disciplinary action against a member, or takes final action with respect to a denial or conditioning membership, or takes final action with respect to a denial or limitation of access of a person to any services offered by the security-based swap execution facility, the security-based swap execution facility shall file a notice of such action with the Commission within 30 days and serve a copy on the affected person.
(b) For purposes of paragraph (a) of this section:
(1) A disciplinary action shall not be considered “final” unless:
(i) The affected person has exhausted their administrative remedies at the security-based swap execution facility; and
(ii) The disciplinary action is not a summary action permitted under § 242.819(g)(13)(ii).
(2) A disposition of a matter with respect to a denial or conditioning of membership, or a denial or limitation of access shall not be considered “final” unless such person has exhausted their administrative remedies at the security-based swap execution facility with respect to such matter.
(c) A notice required by paragraph (a) of this section shall provide the following information:
(1) The name of the member and its last known address, as reflected in the security-based swap execution facility's records;
(2) The name of the person, committee, or other organizational unit of the security-based swap execution facility that initiated the disciplinary action or access restriction;
(3) In the case of a final disciplinary action:
(i) A description of the acts or practices, or omissions to act, upon which the sanction is based, including, as appropriate, the specific rules that the security-based swap execution facility has found to have been violated;
(ii) A statement describing the respondent's answer to the charges; and
(iii) A statement of the sanction imposed and the reasons therefor;
(4) In the case of a final action with respect to a denial or conditioning of membership, or a denial or limitation of access:
(i) The financial or operating difficulty of the member or prospective member (as the case may be) upon which the security-based swap execution facility determined that the member or prospective member could not be permitted to do, or continue to do, business with safety to investors, creditors, other members, or the security-based swap execution facility;
(ii) The pertinent failure to meet qualification requirements or other prerequisites for membership or access and the basis upon which the security-based swap execution facility determined that the person concerned could not be permitted to have membership or access with safety to investors, creditors, other members, or the security-based swap execution facility; or
(iii) The default of any delivery of funds or securities to a clearing agency by the member;
(5) The effective date of the final disciplinary action, or final action with respect to a denial or conditioning of membership, or a denial or limitation of access; and
(6) Any other information that the security-based swap execution facility may deem relevant.
Source: eCFRURL: https://www.ecfr.gov/api/versioner/v1/full/2024-07-01/title-17.xmlFetched: 7/26/2026