(1) CDP may refer a Clearing Member to the Disciplinary Committee where:
(a) the Clearing Member fails to procure securities as directed by CDP, pursuant to these Rules; or
(b) the Clearing Member fails to deliver securities in the buying-in market in accordance with the buying-in procedures as prescribed by CDP.
(2) If the Disciplinary Committee is satisfied that CDP has proved on a balance of probabilities that the Clearing Member has committed the conduct described in the charge, the Disciplinary Committee:
(a) shall impose a penalty, pursuant to its power under Rule 11.5.4, not lower than $20,000; and
(b) may choose to impose, in addition to the penalty in subsection (a), any one or more of the sanction(s) as set out in Rule 11.5.4.
Added on 20 November 200920 November 2009 and amended on 21 January 201321 January 2013 and 10 December 201810 December 2018.