New guidance from Montreal Exchange (MX) issued on Tuesday sets out the factors that it will consider when setting disciplinary penalties.
Specifically, the guidelines will be used to determine whether disciplinary sanctions are “fair and appropriate” and to ensure that penalties represent an appropriate deterrent, the MX says in a notice.
The MX’s regulatory division will consult the guidelines when evaluating whether a proposed settlement is reasonable and when proposing penalties to a disciplinary committee.
In addition, the guidance will allow market participants to understand the underlying principles the regulatory division uses when it determines disciplinary sanctions.
Separately, the MX also announced the creation of a new regulatory consultative group to engage directly with market participants “to exchange ideas, insights and perspective regarding regulation, certain rule amendment proposals, guidelines and FAQs.”
The MX is seeking industry personnel to sit on the group for a two-year term. The MX intends to meet with the group on a bi-annual basis. Applications to serve on the group are due by Jan. 20, 2017.
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