PUBLIC LAW 94-29—JUNE 4, 1975
89 STAT. 143
participants in the use of the clearing agency, or to regulate by virtue of any authority conferred by this title matters not related to the purposes of this section or the administration of the clearing agency. "(G) The rules of the clearing agency provide that (subject to any rule or order of the Commission pursuant to section 17(d) •^"•^^' P- 137. or 19(g)(2) of this title) its participants shall be appropriately Post, p. 146. disciplined for violation of any provision of the rules of the clearing agency by expulsion, suspension, limitation of activities, functions, and operations, fine, censure, or any other fitting sanction. " (H) The rules of the clearing agency are in accordance with the provisions of paragraph (5) of this subsection, and, in general, provide a fair procedure with respect to the disciplining of participants, the denial of participation to any person seeking participation therein, and the prohibition or limitation by the clearing agency of any person with respect to access to services offered by the clearing agency. " (I) The rules of the clearing agency do not impose any burden on competition not necessary or appropriate in furtherance of the purposes of this title. "(4)(A) A registered clearing agency may, and in cases in which Denial of the Commission, by order, directs as appropriate in the public interest participation. shall, deny participation to any person subject to a statutory disqualification. A registered clearing agency shall file notice with the Notice. Commission not less than thirty days prior to admitting any person to participation, if the clearing agency knew, or in the exercise of reasonable care should have known, that such person was subject to a statutory disqualification. The notice shall be in such form and contain such information as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors. "(B) A registered clearing agency may deny participation to, or condition the participation of, any person if such person does not meet such standards of financial responsibility, operational capability, experience, and competence as are prescribed by the rules of the clearing agency. A registered clearing agency may examine and Examination and verify the qualifications of an applicant to be a participant in accord- verification. ance with procedures established by the rules of the clearing agency. "(5)(A) In any proceeding by a registered clearing agency to Notice. determine whether a participant should be disciplined (other than a summary proceeding pursuant to subparagraph (C) of this paragraph), the clearing agency shall bring specific charges, notify such participant of, and give him an opportunity to defend against such charges, and keep a record. A determination by the clearing agency to impose a disciplinary sanction shall be supported by a statement setting forth— "(i) any act or practice in which such participant has been found to have engaged, or which such participant has been found to have omitted; "(ii) the specific provisions of the rules of the clearing agency which any such act or practice, or omission to act, is deemed to violate; and "(iii) the sanction imposed and the reasons therefor. "(B) In any proceeding by a registered clearing agency to deter- Notice and mine whether a person shall be denied participation or prohibited or hearing, limited with respect to access to services offered by the clearing agency, the clearing agency shall notify such person of, and give him an opportunity to be heard upon, the specific grounds for denial or
�
