EBS Global Facility Limited – SEF Application – 

Exhibit P: Disciplinary Protocols 

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EBS Global Facility Limited – SEF Application - 

Exhibit P: Disciplinary Protocols 
EBS Global Facility Limited - SEF Application – 

Exhibit P: Disciplinary Protocols 

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Contents

1. DISCIPLINARY PANELS .................................................................................................. 3 

a. Review Panel ........................................................................................................ 3 

b. Hearing Panel ........................................................................................................ 3 

c. Conflicts ................................................................................................................. 4 

2. RULE ENFORCEMENT PROCEDURES.......................................................................... 4 

a. Jurisdiction ............................................................................................................ 4 

b. Market Regulation Staff Powers and Duties .......................................................... 4 

c. The Review Panel ................................................................................................. 6 

d. Notice of Charges .................................................................................................. 7 

e. Answer; Request for Hearing; Failure to Answer or Deny Charges ...................... 7 

f. Selection of Hearing Panel .................................................................................... 7 

g. Challenge to Members of the Hearing Panel......................................................... 8 

h. Hearing on Sanctions in the Event of Failure to Deny Charges; Failure to 

Request Hearing Deemed Acceptance of Sanctions ............................................ 8 

i. Settlement Prior to Commencement of Hearing .................................................... 9 

j. Hearing Procedures .............................................................................................. 9 

k. Written Decision of Hearing Panel ....................................................................... 11 

l. Liability for Expenses .......................................................................................... 11 

m. Effective Date of Sanctions ................................................................................. 12 

n. Summary Suspension ......................................................................................... 12 

o. Extension of Time Limits ..................................................................................... 13 

3. DISPUTE RESOLUTION ................................................................................................ 13 

a. Choice of Law ...................................................................................................... 13 

b. Disputes Among Trading Privilege Holders, Authorised Traders, and 

Customers ........................................................................................................... 13 

c. Disputes with EGFL ............................................................................................. 13 
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Exhibit P: Disciplinary Protocols 

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This Exhibit P describes EBS Global Facility Limited’s (“EGFL”‘s) disciplinary and enforcement 

protocols, tools and procedures, and arrangements for dispute resolution. All capitalised terms 

used in this Exhibit P and not defined have the meanings ascribed thereto in the Facility 

Rulebook, which is included as Exhibit M to this Application. All references to “Rules” contained 

in this Exhibit are references to the Rules of the Facility Rulebook. 

1. DISCIPLINARY PANELS 

a. Review Panel 

Section 10.12 of EGFL’s Governance Policy provides for the Board of Directors of EGFL to 

appoint a “Review Panel” at such time as is determined in the discretion of the Board or as 

required by Applicable Law. The Review Panel shall consist of no less than five panelists and 

shall include at least one person who would not be disqualified from serving as a Public Director 

under the CFTC Regulations (the “Public Panelist”). Such Public Panelist shall serve as the 

chair of the Review Panel. No Participant shall be permitted to participate in deliberations or 

voting on any matter in which the Participant has a financial interest. 

Under Section 10.13 of EGFL’s Governance Policy the Review Panel shall have the power to 

direct that an investigation of any suspected Violation be conducted. In any case where the 

Review Panel concludes, by majority vote, that a Violation may have occurred, the relevant 

Participant shall be advised of that fact and the matter shall be referred to the Hearing Panel 

(see below), pursuant to the procedures detailed in Chapter Five of the Company’s Facility 

Rulebook. 

b. Hearing Panel 

Section 10.14 of EGFL’S Governance Policy provides for the Board to appoint a “Hearing 

Panel,” at such time as is determined in the discretion of the Board or as required by Applicable 

Law. The Hearing Panel shall consist of no less than five panelists and shall include at least 

one person who is a Public Panelist, who shall serve as the chair of the Hearing Panel. 

Pursuant to section 10.15 of EGFL’s Governance Policy, no Participant shall be permitted to 

participate in deliberations or voting on any matter in which the Participant has a financial 

interest. Within ten (10) days of being notified of the appointment of a Hearing Panel, a 

Respondent (as defined in Chapter Five of the Company’s Facility Rulebook) may seek to 

disqualify any individual named to the Hearing Panel on account of a conflict of interest or other 

reasonable grounds, by serving written notice to the appropriate staff of the Company and 

providing a copy thereof to the chair of the Hearing Panel. By not filing a timely request for 

disqualification, the Respondent will be deemed to have waived any objection to the 

composition of the Hearing Panel. The appropriate staff of the Company will decide the merits 

of any request for disqualification within his or her sole discretion and such decision will not be 

subject to appeal. The Hearing Panel shall conduct the formal hearings on Violations referred 

to it by the Review Panel, pursuant to the procedures detailed in Chapter Five of the Company’s 

Facility Rulebook. 
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c. Conflicts 

Section 10.16 of EGFL’S Governance Policy provides that in designating the members of a 

Review Panel or Hearing Panel, the directors shall endeavour to appoint a Panel that is not 

dominated or subject to disproportionate influence by any group or class of Participants. The 

Board shall consider the objection of any Participant who believes this objective is not satisfied, 

and the Board will determine whether a change is necessary or advisable to meet this objective. 

2. RULE ENFORCEMENT PROCEDURES 

a. Jurisdiction 

Under Rule 501(a), EGFL will have the authority to initiate, conduct investigations, and 

prosecute Violations committed by Facility Subject Persons, and to impose sanctions for such 

Violations as provided in the Rules. 

Under Rule 501(b), each Participant and Clearing Firm, upon becoming a Participant or 

Clearing Firm and thereafter upon any change of address will file with EGFL a written notice 

designating an address for receiving service of documents. If a Participant or Clearing Firm fails 

to designate such an address, service by mail to its address on file with EGFL shall be good 

service, and delivery thereof shall be deemed to have occurred as of the date of such mailing. 

b. Market Regulation Staff Powers and Duties 

Under Rule 502(a), it will be the duty of the Compliance Function to enforce the Rules, and it 

shall have the authority to inspect the books and records of all Facility Subject Persons and the 

authority to require any Facility Subject Person to appear before him or her to answer questions 

regarding matters being investigated by the Market Regulation Staff. The Compliance Function 

may also delegate such authority to Market Regulation Staff who shall consist of personnel of 

EGFL, and such other Regulatory Services Providers as EGFL may hire on a contract basis. 

The Compliance Function shall ensure that surveillance systems are established to monitor 

trading to prevent manipulation and price distortion. Such monitoring may be done by the 

Market Regulation Staff or a third party provider, and shall include real time monitoring and the 

ability to conduct comprehensive and accurate transaction reconstructions. 

Under Rule 502(b), the Market Regulation Staff will conduct investigations of possible 

Violations, prepare written reports respecting such investigations, furnish such reports to the 

Review Panel and conduct the prosecution of such Violations. An investigation must be 

commenced upon receipt of a request from any Regulatory Agency, its staff or receipt of 

information (such as data produced by automated surveillance systems) by EGFL that in the 

judgment of the Market Regulation Staff indicates a reasonable basis for finding that a Violation 

may have occurred or will occur. Absent mitigating factors, each investigation will be completed 

no later than 12 months after the investigation is opened. Mitigating factors include the 

complexity of the investigation, the number of firms or individuals involved as potential 

wrongdoers, the number of potential Violations to be investigated and the volume of documents 

and data to be examined and analysed by Market Regulation Staff. 

Under Rule 502(c) if, in any case, the Compliance Function or another member of the Market 

Regulation Staff, designated for this purpose by the Compliance Function, concludes that there 
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is a reasonable basis for finding a Violation, it shall present an investigation report concerning 

the matter to the Review Panel. No more than one warning letter may be issued to the same 

person found to have committed the same Violation more than once in a rolling 12-month 

period. The investigation report must include the reason the investigation was initiated; a 

summary of the complaint, if any; the relevant facts; Market Regulation Staff’s analysis and 

conclusions; and a recommendation as to whether disciplinary action should be pursued. The 

report may also include the Facility Subject Person’s disciplinary history at the Facility, including 

copies of any warning letters. The Market Regulation Staff may issue a warning letter, including 

for minor transgressions. However, no more than one warning letter may be issued to the same 

person found to have committed the same Violation more than once in a rolling 12-month 

period. 

Under Rule 502(d) if, in any case, the Compliance Function or another member of the Market 

Regulation Staff, designated for this purpose by the Compliance Function, concludes that no 

reasonable basis exists for finding a Violation, it must prepare a written investigation report 

including the reason the investigation was initiated; a summary of the complaint, if any; the 

relevant facts; and Market Regulation Staff’s analysis and conclusions. The Compliance 

Function or another member of the Market Regulation Staff may issue a warning letter in any 

case where it is concluded that no reasonable basis exists for finding a Violation, without 

limitation on the number of warning letters issued to a person. 

Under Rule 502(e), before presenting an investigation report to the Review Panel, the Market 

Regulation Staff may, in its sole discretion, inform the prospective Respondent that it intends to 

submit the matter to the Review Panel, and at such time the proposed Respondent may submit 

an offer of settlement to the Hearing Panel, in accordance with the procedures of Rule 509, prior 

to presentation of the investigation report to the Review Panel. 

Rule 502(f) provides that EGFL has contracted with NFA to act as Regulatory Services Provider 

to provide certain regulatory services to EGFL, including reviews of the Facility’s audit trail 

information for potential violations. EGFL will retain ultimate decision-making authority with 

respect to any regulatory services to be provided by NFA. 

Under Rule 502(g), the EGFL or its Regulatory Services Provider shall have the right with such 

prior reasonable advance notice as is practicable under the circumstances (unless in 

furtherance of regulatory purposes in which case without prior notice Facility Subject Persons), 

in connection with determining whether all Rules are being, will be, or have been complied with 

by the Facility Subject Person, to: (i) inspect systems, equipment and software of any kind 

operated by the Facility Subject Person in connection with accessing, and the Participant’s or 

Customer’s transacting on, the Facility, wherever located; (ii) access, either physically or 

electronically, the systems, equipment, software, and the premises on which the systems, 

equipment, and software are located, any data stored in any of the systems or equipment, 

during the regular business hours; and/or (iii) copy or reproduce any data to which EGFL has 

access under this Rule. Each Facility Subject Person shall provide the Regulatory Services 

Provider with the same access to its books and records and offices as it is required to provide to 

EGFL under the Rules and Applicable Law. 
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c. The Review Panel 

Under Rule 503(a), the Review Panel shall have the power to direct that an investigation of any 

suspected Violation be conducted by the Market Regulation Staff, and shall hear any matter 

referred to it by the Market Regulation Staff regarding a suspected Violation. 

Under Rule 503(b), the Review Panel shall be appointed by the Board, and shall be comprised 

of five persons, including at least two Participants and at least two non-Participants. In the case 

where the subject of the investigation is a Clearing Firm, at least one member of the Review 

Panel shall be a Clearing Firm. The Board shall appoint as chairman (the “Review Panel 

Chairman”) of the Review Panel a person who would not be disqualified from serving as a 

“Public Director” as defined in Commission Regulations. Three panel members shall constitute 

a quorum for any action, so long as they are in attendance at the time of the relevant action. 

The Review Panel may not include any members of the Market Regulation Staff, any person 

involved in adjudicating any other stage of the same proceeding, or any person with a history of 

disciplinary offenses that would be disqualifying under CFTC Regulation § 1.63(c). The Review 

Panel shall include at least one member that is not a member of EGFL whenever the Review 

Panel is: (i) acting with respect to a disciplinary action in which the Respondent is a member of 

the Board, the Review Panel or the Hearing Panel; or (ii) when the suspected Violation involves 

manipulation (or attempted manipulation) of the price of a Contract or conduct which directly 

results in financial harm to a non-member of EGFL. The Review Panel shall include sufficient 

different membership interests so as to ensure fairness and to prevent special treatment or 

preference for any person. 

Under Rule 503(c), all information, records, and documents provided to the Review Panel, and 

all related records and documents shall be treated as confidential and shall not be disclosed, 

except as necessary to further an EGFL investigation or as required by Applicable Law. 

Under Rule 503(d), upon receipt of an investigation report, the Review Panel shall promptly 

review the report and, within thirty days of receipt, take one of the following actions: 

(1) If the Review Panel determines that additional investigation or evidence is needed, it 

shall promptly direct the Market Regulation Staff to conduct further investigation; 

(2) If the Review Panel determines that no reasonable basis exists for finding a Violation or 

that prosecution is otherwise unwarranted, it may direct that no further action be taken. 

Such determination must be in writing and must include a written statement setting forth 

the facts and analysis supporting the decision; or 

(3) If the Review Panel determines that a reasonable basis exists for finding a Violation and 

adjudication is warranted, it must direct that the Facility Subject Person alleged to have 

committed the Violation be served with a notice of charges as set forth in Rule 504. 

Under Rule 503(e), if the Review Panel determines that there may have been a Violation but 

that no adjudication is warranted, the Review Panel may issue a warning letter to the Facility 

Subject Person informing it that there may have been a Violation and that such continued 

activity may result in disciplinary sanctions. Where a Violation is determined to have occurred, 

no more than one warning letter for the same potential Violation may be issued to the same 

person during a rolling 12 month period. 
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d. Notice of Charges 

Under Rule 504(a), if the Review Panel determines that a reasonable basis exists for finding a 

Violation and adjudication is warranted, the Compliance Function shall serve a notice of charges 

(a “Notice”) on the Facility Subject Person alleged to have been responsible for the Violation 

(such Facility Subject Person, the “Respondent”). Such Notice shall state: 

(1) the acts, practices or conduct with which the Respondent is charged; 

(2) the Rules allegedly violated and how such acts, practices or conduct constitute a 

Violation of such Rules; 

(3) that the Respondent is entitled, upon written request filed with EGFL, within twenty days 

of service of the Notice, to a formal hearing on the charges; 

(4) that the failure of the Respondent to request a hearing within twenty days of service of 

the Notice, except for good cause shown, will be deemed a waiver of its right to a 

hearing; 

(5) that the failure of the Respondent to file an Answer (as defined below under Rule 505) 

with the Market Regulation Staff within twenty days of service of the Notice shall be 

deemed an admission of all of the acts, practices or conduct alleged in the Notice; and 

(6) that the failure of the Respondent to expressly deny a particular charge contained in the 

Notice will be deemed an admission of such acts, practices or conduct. 

Under Rule 504(b), a Respondent will have the right to be represented by legal counsel or any 

other representative of its choosing in all succeeding stages of the disciplinary process, except 

by any member of the Board, Review Panel or Hearing Panel, any personnel of EGFL or any 

person substantially related to the underlying investigation, such as a material witness or 

Respondent. 

e. Answer; Request for Hearing; Failure to Answer or Deny Charges 

Under Rule 505(a), the Respondent will serve on the Compliance Function a written answer (an 

“Answer”) to the Notice and a written request for a hearing on the charges within thirty days of 

the date of service of the Notice. The Answer must include a statement that the Respondent 

admits, denies, or does not have and is unable to obtain sufficient information to deny each 

allegation. A statement of lack of sufficient information will have the effect of a denial of the 

allegation. 

Under Rule 505(b), the Respondent’s failure to file an Answer within such thirty (30) day period 

shall be deemed an admission of all allegations contained in the Notice. 

Under Rule 505(c), the Respondent’s failure to expressly deny a particular charge contained in 

the Notice shall be deemed an admission of such acts, practices or conduct. 

Under Rule 505(d), the Respondent’s failure to request a hearing within such twenty (20) day 

period, absent good cause shown, shall be deemed a waiver of Respondent’s right to a hearing. 

f. Selection of Hearing Panel 

Under Rule 506(a), formal hearings on any Notice shall be conducted by the Hearing Panel 

selected by the Board. The Hearing Panel shall include at least two Participants and at least 
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two non-Participants. In the case where the subject of the investigation is a Clearing Firm, at 

least one member of the Review Panel shall be a Clearing Firm. The Board shall also select, as 

chairman of the Hearing Panel (“Hearing Panel Chairman”), a person who would not be 

disqualified from serving as a “Public Director” as defined in Commission Regulations. The 

Hearing Panel Chairman, in his or her sole discretion, will set a date for the hearing (the 

“Hearing Date”). The Hearing Panel may not include any members of the Market Regulation 

Staff, any person involved in adjudicating any other stage of the same proceeding, or any 

person with a history of disciplinary offenses that would be disqualifying under CFTC Regulation 

§ 1.63(c). The Hearing Panel shall include at least one member that is not a member of EGFL 

whenever the Hearing Panel is: (i) acting with respect to a disciplinary action in which the 

Respondent is a member of the Board, the Review Panel or the Hearing Panel; or (ii) when the 

suspected Violation involves manipulation (or attempted manipulation) of the price of a Contract 

or conduct which directly results in financial harm to a non-member of EGFL. The Hearing 

Panel shall include sufficient different membership interests so as to ensure fairness and to 

prevent special treatment or preference for any person. 

Under Rule 506(b), the Hearing Panel Chairman shall notify the Market Regulation Staff and the 

Respondent of the Hearing Date and the names of the members of the Hearing Panel at least 

fifteen (15) days prior to the Hearing Date. 

Under Rule 506(c), no member of the Hearing Panel shall hear a case in which that member 

has a direct financial, personal or other interest in the matter under consideration. 

g. Challenge to Members of the Hearing Panel 

Under Rule 507, within ten (10) days after service on the Respondent of notice of the Hearing 

Date and names of the members of the Hearing Panel, the Respondent may challenge, in 

writing, the inclusion of any member of the Hearing Panel for cause, including without limitation, 

if the member has a direct financial, personal or other interest in the matter under consideration. 

The merits of such challenge shall be finally decided by the Regulatory Oversight Committee. If 

said written challenge is not received within such ten (10) day period, absent good cause 

shown, any such right to challenge is deemed waived. 

h. Hearing on Sanctions in the Event of Failure to Deny Charges; Failure to Request 

Hearing Deemed Acceptance of Sanctions 

Under Rule 508, in the event the Respondent fails to file an Answer or admits or fails to deny 

the charge of a Violation contained in the Notice, the Hearing Panel shall find the Respondent 

guilty of each such Violation and may impose a sanction for each such Violation subject to the 

limitations set forth in Rule 511(b)(7). The Hearing Panel shall promptly notify the Respondent 

of any such sanction and of the Respondent’s right to a hearing on the sanction within the 

period of time which shall be stated in the notice, after the imposition of such sanction. Failure 

to request a hearing on the sanction in a timely manner, absent good cause shown, will be 

deemed to be acceptance of the sanction. 
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i. Settlement Prior to Commencement of Hearing 

Under Rule 509(a), prior to the commencement of the hearing, the Hearing Panel may accept a 

written offer of settlement from the Respondent, whereby the Respondent, without either 

admitting or denying any Violations, may agree to: 

(1) a cease and desist order; 

(2) a fine for each Violation plus the monetary value of any benefit received as a result of 

the Violation (provided that in no case shall any fine exceed $100,000 per Violation); 

(3) restitution of any counterparty harm; and/or 

(4) revocation or suspension of Trading Privileges or Customer or Clearing Firm status of 

the Respondent. 

Under Rule 509(b), if the Hearing Panel accepts an offer of settlement, it must issue a written 

decision specifying each Rule Violation it has reason to believe was committed, including the 

basis for the Hearing Panel’s conclusions. The sanctions must include full counterparty 

restitution where counterparty harm is demonstrated, except where the amount of restitution or 

to whom it should be provided cannot be reasonably determined. If an offer of settlement is 

accepted without the support of the Market Regulation Staff, the decision must adequately 

support the Hearing Panel’s acceptance of the settlement. Where applicable, the decision must 

include a statement that the Respondent has accepted the sanctions imposed without either 

admitting or denying any Violations. Any sanctions imposed pursuant to an offer of settlement 

must take into account the Respondent’s disciplinary history. 

Under Rule 509(c), the Respondent may withdraw an offer of settlement at any time before final 

acceptance by the Hearing Panel. If an offer is withdrawn after submission, or is rejected by the 

Hearing Panel, the Respondent may not be deemed to have made any admissions by reason of 

the offer of settlement and may not be otherwise prejudiced by having submitted the offer of 

settlement. 

j. Hearing Procedures 

Under Rule 510(a), in every instance where a Respondent has requested a hearing on a charge 

that is denied, or on a sanction set by the Hearing Panel pursuant to Rule 508, the Respondent 

will have the opportunity for a hearing in accordance with the procedures of Rule 510. 

Under Rule 510(b), the Hearing Panel shall determine the procedures to be followed in any 

hearing before it, except that the following will apply in every case: 

(1) The hearing must be fair and must be promptly convened after reasonable notice to the 

Respondent. 

(2) The prosecution shall be conducted by the Market Regulation Staff. 

(3) The Respondent shall be allowed to appear personally at the hearing, and to be 

represented by legal counsel or any other representative of its choosing and, either 

personally or through such representative, to present witnesses and documentary 

evidence and to cross-examine witnesses. 

(4) The Market Regulation Staff and the Respondent shall deliver to each other a statement 

listing the witnesses expected to be called and the documents expected to be introduced 

into evidence, together with copies of such documents, by ten days prior to the hearing 
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or as the Hearing Panel may reasonably specify. Unless the Hearing Panel, in its 

discretion, waives compliance with this requirement, no witness may testify and no 

documentary evidence may be introduced into evidence unless listed in and, in the case 

of documents, furnished with such statement. On written request, the Market Regulation 

Staff will provide the Respondent with access to all books, documents or other tangible 

evidence in the possession or under the control of EGFL which are to be relied upon by 

the Market Regulation Staff or which are relevant to the charges; provided, however, that 

protected attorney work product, attorney-client communications and investigative work 

product, including the investigation report, are neither discoverable by a Respondent nor 

subject to review by a Respondent as part of the investigation file. 

(5) EGFL shall require that persons within its jurisdiction who are called as witnesses 

participate in the hearing and produce evidence, and will make reasonable efforts to 

secure the presence of all other persons called as witnesses whose testimony would be 

relevant. Failure by a Facility Subject Person to so participate and produce evidence 

when requested by EGFL shall be a Violation of these Rules. 

(6) No formal rules of evidence shall apply, and the Hearing Panel shall be free to accept or 

reject any and all evidence it considers proper, but the hearing may not be so informal 

as to deny a fair hearing. 

(7) Neither the Market Regulation Staff, the Respondent, any witnesses testifying before the 

Hearing Panel nor any other person within the Facility’s jurisdiction shall engage in 

conduct that may impede the progress of a hearing or the fair and just resolution of the 

subject matter thereof, and any such conduct may itself constitute a Violation. 

(8) Ex parte contacts by any of the parties with members of the Hearing Panel will not be 

permitted. 

(9) A substantially verbatim record capable of being accurately transcribed will be made of 

the Proceeding, provided however, that such record need not be transcribed, unless the 

transcript is requested by the Respondent or an applicable regulator, or unless the 

decision is appealed to the Commission or reviewed by the Commission on its own 

motion. In all other instances, a summary record of the hearing is permitted. 

(10) The cost of transcribing the record of the hearing must be borne by a Respondent who 

requests the transcript, or whose application for Commission review of the disciplinary 

action has been granted. In all other instances, the cost of transcribing the record will be 

borne by EGFL. 

(11) The Notice, the Answer, any stenographic transcript of the hearing, the documentary 

evidence and any other material presented to the Hearing Panel by either party with 

notice to the other shall constitute the record of the hearing (the “Hearing Record”). 

(12) The burden of proof will be on the prosecution to prove a Violation by a preponderance 

of the evidence. A finding of a Violation shall be made by majority vote based on the 

Hearing Panel’s decision as to the weight of the evidence contained in the Hearing 

Record. 

(13) All sanctions imposed by the Hearing Panel must be commensurate with the Violations 

committed and must be clearly sufficient to deter additional similar Violations by the 

Respondent and similar Violations by other Facility Subject Persons. All sanctions must 

take into account the Respondent’s disciplinary history. In the event of demonstrated 

counterparty harm, any sanctions must include full counterparty restitution, except where 

the amount of restitution or to whom it should be provided cannot be reasonably 

determined. 
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k. Written Decision of Hearing Panel 

Under Rule 511(a), promptly after a hearing conducted in accordance with Chapter 5 of the 

Rulebook, the Hearing Panel shall render a written decision based upon the weight of evidence 

in the Hearing Record and must provide a copy to the Respondent within thirty (30) days of 

such decision. Under Rule 511(b), the written decision shall include: 

(1) the name of the Respondent; 

(2) a summary of the charges alleged in the Notice; 

(3) a summary of the Answer; 

(4) a summary of the evidence produced at the hearing or, where appropriate, incorporation 

by reference of the investigation report; 

(5) a statement of the findings and conclusions of the Hearing Panel with respect to each 

charge, and a complete explanation of the evidentiary and other basis for such findings 

and conclusions with respect to each charge, or, in the event of a settlement, a 

statement specifying the alleged Violations; 

(6) an indication of each specific rule that the Respondent was found to have violated and 

whether the Violation resulted in any financial harm to Customers; 

(7) an order stating any sanctions imposed, including the basis for the sanctions, any terms 

of the sanctions, the date the determination to impose sanctions was made and the 

effective date of such sanctions; the sanctions that may be imposed on the Respondent 

may be one or more of the following: 

(1) a cease and desist order; 

(2) a fine for each Violation plus the monetary value of any benefit received as a 

result of the Violation (provided that in no case shall any fine exceed $100,000 

per Violation); 

(3) restitution of counterparty harm, except where the amount of restitution or to 

whom it should be provided cannot be reasonably determined; and/or 

(4) the issuance of a suspension or revocation of Trading Privileges or Customer or 

Clearing Firm status of the Respondent. 

(8) a statement informing the Respondent that the imposition of sanctions may be appealed 

to the Commission pursuant to Part 9 of the Commission Regulations; 

The Hearing Panel shall take into consideration the Respondent’s disciplinary history prior to 

imposing any disciplinary sanctions. 

EGFL shall also provide the written decision to the NFA through BASIC, or deliver the written 

decision to the NFA to be input into BASIC. 

If EGFL suspends or revokes the Trading Privileges or Customer or Clearing Firm status of the 

Respondent, it must publicly publish the information contained in the written notice pursuant to 

Rule 511(b). 

l. Liability for Expenses 

Under Rule 512, any Respondent that, after notice and opportunity for hearing, has been found 

to have committed a Violation may, in the discretion of the Hearing Panel appointed in the 
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matter, be required to pay to EGFL an amount equal to any and all reasonable and documented 

out-of-pocket expenses incurred by EGFL in connection with the prosecution of such Violations, 

in addition to any fine or other monetary sanction which may be imposed upon such 

Respondent by virtue of the Violations found by the Hearing Panel. 

m. Effective Date of Sanctions 

Under Rule 513(a), if a Respondent submits an offer of a settlement to the Hearing Panel, any 

sanction included as a part of such settlement shall become final and effective on the date that 

the Hearing Panel approves such settlement, or on such other date as is specified in the 

decision. 

Under Rule 513(b), subject to Rule 513(c) and (d), any decision (including any sanctions) by a 

Hearing Panel pursuant to Chapter 5 or the Participation Committee pursuant to Rule 205 will 

be the final decision of EGFL and will become effective fifteen (15) days, or such longer time as 

the Hearing Panel or Participation Committee may specify, after a copy of the written decision of 

the Hearing Panel or Participation Committee has been served on the Respondent, applicant, 

Participant or Customer, as applicable. 

Under Rule 513(c), in any case where a Respondent, applicant, Participant or Customer has 

consented to the action taken and to the timing of its effectiveness, the Hearing Panel or 

Participation Committee may cause the decision involving any disciplinary action (including any 

sanctions) to become effective prior to the fifteen (15) day period. 

Under Rule 513(d), any decision (including any sanctions) by a Hearing Panel or the 

Participation Committee may become effective prior to the time set forth in Rule 513(b) if: 

(1) EGFL reasonably believes, and so states in its written decision, that immediate action is 

necessary pursuant to Rule 514; 

(2) if EGFL determines, and so states in its written decision, that the actions of a Facility 

Subject Person have impeded the progress of a disciplinary hearing; or 

(3) EGFL determines a Facility Subject Person has violated Rules relating to timely 

submission of accurate records required for clearing or verifying each day’s transactions 

or other similar activities. 

Under Rule 513(e), ff a decision is to become effective earlier than the time set forth in 

Rule 513(b) pursuant to Rule 513(c) or (d), EGFL shall notify the Respondent, applicant, 

Participant or Customer in writing stating the reasons for the determination. 

Under Rule 513(f), any fine or other monetary sanction imposed by a Hearing Panel shall be 

due and payable on the effective date of the decision imposing such fine or sanction, or on such 

later date as the Hearing Panel may specify. 

n. Summary Suspension 

Under Rule 514(a), a Facility Subject Person (as identified by Market Regulation Staff in an 

investigation or by a Trading Privilege Holder acting as an Intermediary for such Facility Subject 

Person) may be summarily and immediately suspended from trading on the Facility, upon a 

written determination based on a reasonable belief, by the Chairman of the Regulatory 
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Oversight Committee that such immediate action is necessary to protect the best interest of the 

market place. 

Under Rule 514(b), the Facility Subject Person against whom such summary action is taken 

shall be served with a notice of the action either before the action is taken or at the earliest 

possible opportunity thereafter. The notice will state the action taken, the reasons for the action, 

the effective date and time, and the duration of the action. 

Under Rule 514(c), the Facility Subject Person may as soon as practicable, upon written 

request, have a hearing before the Hearing Panel pursuant to the procedures of Rule 510. 

Under Rule 514(d), promptly following the hearing, the Hearing Panel shall render a written 

decision based upon the weight of the evidence in the record and will provide a copy to the 

Facility Subject Person. The decision shall include a description of the summary action taken, 

the reasons for the summary action, the reasons for the summary action, a summary of the 

evidence produced at the hearing, a statement of findings and conclusions, a determination that 

the summary action should be affirmed, modified or reversed, a declaration of any action to be 

taken pursuant to the determination, and the effective date and duration of the action. 

o. Extension of Time Limits 

Under Rule 515, any time limit provided for in Rules 504, 505, 506, 507, 508, or 510 may be 

extended by the mutual consent of the Respondent and the Market Regulation Staff, or by the 

Hearing Panel Chairman. 

3. DISPUTE RESOLUTION 

a. Choice of Law 

Under Rule 701, the laws of England and Wales, without regard to its conflict of laws principles, 

will govern the Facility Rulebook and all disputes arising out of or related to EGFL, the Facility or 

any transaction on the Facility 

b. Disputes Among Trading Privilege Holders, Authorised Traders, and Customers 

Under Rule 702, all disputes between and among Facility Subject Persons that arise out of or 

relate to EGFL or the Facility or any transaction that was made or attempted to be made on the 

Facility shall be resolved exclusively in the courts of England and Wales, save for in the 

following circumstances: 

(i) If all parties to the dispute are members or associates of the NFA, the dispute will 

be resolved in NFA Member Arbitration; or 

(ii) If all parties separately agree to another forum, the dispute will be resolved in the 

other forum. 

c. Disputes with EGFL 

Under Rule 703(a), subject to Rule 102 (Limitation of Liability), all disputes between and among 

EGFL on the one hand, and Facility Subject Persons on the other hand, that arise out of or 

relate to the Facility, or any transaction that was made or attempted to be made on the Facility, 
EBS Global Facility Limited - SEF Application – 

Exhibit P: Disciplinary Protocols 

P-14

shall be resolved exclusively in the courts of England and Wales. Suit on any such dispute 

must be brought within one year from the time the cause of action has accrued. 

Under Rule 703(b), any current or former Facility Subject Person who does not substantially 

prevail in a lawsuit or any other type of legal proceeding instituted in a court of law or otherwise 

against EGFL or any of its officers, directors, committee members, volunteers, employees, 

personnel or agents, shall pay to EGFL any and all reasonable expenses and disbursements, 

including reasonable attorneys’ fees, incurred by EGFL to defend such lawsuit or proceeding.