| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by the Exchange, where the Exchange has Determined the Member, Approved Trader and/or Registered Representative to be Liable | Mandatory minimum penalty imposable by the DC | |||||||||
| Rule Chapter/Number | Brief Description of Rule | Members | Approved Traders | Registered Representatives | ||||||||
| 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | ||||
| Chapter 7 — Adverse Events, Rule Violations & Disciplinary Action | ||||||||||||
| 7.1 | Adverse Events and Rule Violations | |||||||||||
| 7.1.5 | Member, Approved Trader or Registered Representative to immediately notify the Exchange of any Adverse Event or Rule Violation | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 7.2 | Exchange's Disciplinary Powers | |||||||||||
| 7.2.3 | Member, Approved Trader and Registered Representative to comply with restrictions or conditions imposed by the Exchange on its business | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.2.4 | Member, Approved Trader or Registered Representative to comply with restrictions on its activities imposed by the Exchange, where it has been charged | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.3 | Exchange's Powers upon Occurrence of Adverse Events | |||||||||||
| 7.3 | Member, Approved Trader or Registered Representative to comply with the requirements of the Exchange upon the occurrence of an Adverse Event | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.4 | Investigations by the Exchange | |||||||||||
| 7.4.3 | Member and its officers, Approved Trader or Registered Representative to cooperate with investigations | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.4.4 | Member, Approved Trader or Registered Representative not to wilfully make, furnish, or permit the making or furnishing of false or misleading information | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.4.6 | Member, Approved Trader or Registered Representative to provide information as required by the Exchange | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.7 | Disciplinary Committee Proceedings | |||||||||||
| 7.7.5(b) | Person charged and sponsoring corporate Member not to disclose information received in relation to the charge and to give written undertaking to that effect | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 7.10 | Appeals Proceedings | |||||||||||
| 7.10.6(b) | Person charged and sponsoring corporate Member not to disclose information received in relation to the charge and to give written undertaking to that effect | Not Compoundable | Not Compoundable | $10,000 | ||||||||
Added on 16 May 201116 May 2011.