| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by CDP, where CDP has Determined the Clearing Member to be Liable | Mandatory minimum penalty imposable by the DC | |||
| Rule Chapter/Number | Brief Description of Rule | 1st Violation | 2nd Violation | 3rd Violation | ||
| Rule 4 — Chief Executive Officers | ||||||
| 4.1 | Appointment of Chief Executive Officers | |||||
| 4.1.1(1) | Clearing Member to appoint one (1) person as a Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 4.1.1(4) | Clearing Member to notify CDP at least seven (7) days prior to the appointment of a Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 4.2 | Obligations | |||||
| 4.2.1 | Failure to comply with Clearing Rules or Directives. | [Unless otherwise specified in this Schedule] | ||||
| Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
| 4.2.2 | Chief Executive Officer to pay CDP all fees, levies and charges as CDP prescribes | Compoundable | $500 | $1,000 | $2,000 | N.A. |
| 4.2.3(1) | Chief Executive Officer to inform CDP within 14 days before engaging in, or holding any substantial shareholding in, any other business that might potentially conflict with being an Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 4.2.3(3) | Chief Executive Officer to supply CDP with information it requires regarding the engagement or acquisition of shareholding | Not Compoundable | Not Compoundable | $10,000 | ||
| 4.2.3(4) | Chief Executive Officer not to proceed with engagement or acquisition of shareholding contrary to CDP's objection | Not Compoundable | Not Compoundable | $10,000 | ||
| 4.2.3(5) | Chief Executive Officer to end engagement or shareholding if required by CDP | Not Compoundable | Not Compoundable | $10,000 | ||
| 4.3 | Automatic De-Registration | |||||
| 4.3 | Clearing Member to notify CDP immediately upon trigger of CEO de-registration condition | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 4.5 | Resignation of Approved Executive Director | |||||
| 4.5 | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
Added on 16 May 201116 May 2011 and amended on 3 June 20193 June 2019.