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General 5 Discipline
Section 1. Disciplinary Jurisdiction

(a) A Member or a person associated with a Member who is alleged to have violated or aided and abetted a violation of any provision of the Exchange Act, the rules and regulations promulgated thereunder, or any provision of the By-Laws or Rules of the Exchange or any interpretation thereof or resolution of the Board of the Exchange regulating the conduct of business on the Exchange, shall be subject to the disciplinary jurisdiction of the Exchange under this General 5, and after notice and opportunity for a hearing may be appropriately disciplined by expulsion, suspension, limitation of activities, functions, and operations, fine, censure, being suspended or barred from being associated with a Member or any other fitting sanction, in accordance with provisions of the General 5.

(b) Persons associated with a Member may be charged with any violation committed by employees under his supervision or by the Member as though such violation were his own. A Member may be charged with any violation committed by its employees or other person who is associated with such Member, as though such violation were its own.

(c) Any Member or person associated with a Member shall continue to be subject to the disciplinary jurisdiction of the Exchange following such Member's termination or the person's termination of association with a Member with respect to matters that occurred prior to such termination; provided that written notice of the commencement of an inquiry into such matters is given by the Exchange to such former Member or former associated person within one (1) year of receipt by the Exchange, or such other exchange or association recognized for purposes of Option 10, Section 3, of the latest written notice of the termination of such person's status as a Member or person associated with a Member. The foregoing notice requirement does not apply to a person who at any time after a termination again subjects himself to the disciplinary jurisdiction of the Exchange by becoming a Member or a person associated with a Member.

[Adopted June 6, 2019 (SR-ISE-2019-17).]

Section 2. Investigations and Sanctions

Series 8000 of The Nasdaq Stock Market LLC Rules, as such rules may be in effect from time to time (the "Nasdaq Rule 8000 Series"), are hereby incorporated by reference into this Nasdaq ISE Rules General 5, Section 2, and are thus Nasdaq ISE Rules and thereby applicable to Nasdaq ISE Members, Associated Persons, and other persons subject to the Exchange's jurisdiction. Nasdaq ISE Members, Associated Persons, and other persons subject to the Exchange's jurisdiction shall comply with the Nasdaq Rule 8000 Series as though such rules were fully set forth herein. All defined terms, including any variations thereof, contained in the Nasdaq Rule 8000 Series shall be read to refer to the Nasdaq ISE-related meaning of such term. The defined terms "Exchange" or "Nasdaq" in the Nasdaq Rule 8000 Series shall be read to refer to the Nasdaq ISE Exchange; the defined terms "Rule" or "Nasdaq Rule" in the Nasdaq Rule 8000 Series shall be read to refer to the Nasdaq ISE Rules; the defined terms "Board" or "Exchange Board" in the Nasdaq Rule 8000 Series shall be read to refer to the Nasdaq ISE Board of Directors; the defined term "Member" in the Nasdaq Rule 8000 Series shall be read to refer to a Nasdaq ISE Member; the defined term "Associated Person" shall be read to refer to a Nasdaq ISE Associated Person; the defined terms "Nasdaq Regulatory Department" or "Regulation Department" shall be read to refer to the Nasdaq ISE Regulatory Department; the defined terms "Nasdaq Regulation" shall be read to refer to "Nasdaq ISE Regulation"; the defined term "Chief Regulatory Officer" shall be read to refer to the Chief Regulatory Officer of Nasdaq ISE; and "Equity Rule" shall be read to refer to a Nasdaq ISE Rule.

Additionally, references in the Nasdaq Rule 8000 Series to "Rule 0120" shall be read to refer to Nasdaq ISE General 1, Section 1 and Options 1, Section 1. References in the Nasdaq Rule 8000 Series to "Rule 1015" shall be read to refer to Nasdaq ISE Rule General 3, Section 2. References in the Nasdaq Rule 8000 Series to “Nasdaq Options 7, Section 1” shall be read to refer to Nasdaq ISE Options 7, Section 2.

[Adopted June 6, 2019 (SR-ISE-2019-17); amended June 3, 2020 (SR-ISE-2020-22), operative July 3, 2020.]

Section 3. Code of Procedure

Series 9000 of The Nasdaq Stock Market LLC Rules, as such rules may be in effect from time to time (the "Nasdaq Rule 9000 Series"), are hereby incorporated by reference into this Nasdaq ISE Rules General 5, Section 3, and are thus Nasdaq ISE Rules and thereby applicable to Nasdaq ISE Members, Associated Persons, and other persons subject to the Exchange's jurisdiction. Nasdaq ISE Members, Associated Persons, and other persons subject to the Exchange's jurisdiction shall comply with the Nasdaq Rule 9000 Series as though such rules were fully set forth herein. All defined terms, including any variations thereof, contained in the Nasdaq Rule 9000 Series shall be read to refer to the Nasdaq ISE-related meaning of such term. Solely by way of example, and not in limitation or in exhaustion: the defined terms "Exchange" or "Nasdaq" in the Nasdaq Rule 9000 Series shall be read to refer to the Nasdaq ISE Exchange; the defined terms "Rule" or "Nasdaq Rule" in the Nasdaq Rule 9000 Series shall be read to refer to the Nasdaq ISE Rules; the defined terms "Board" or "Exchange Board" in the Nasdaq Rule 9000 Series shall be read to refer to the Nasdaq ISE Board of Directors; the defined term "Member" in the Nasdaq Rule 9000 Series shall be read to refer to a Nasdaq ISE Member; the defined term "Associated Person" shall be read to refer to a Nasdaq ISE Associated Person; the defined terms "Nasdaq Regulatory Department" or "Regulation Department" shall be read to refer to the Nasdaq ISE Regulatory Department; the defined terms "Nasdaq Regulation" shall be read to refer to "Nasdaq ISE Regulation"; the defined term "Chief Regulatory Officer" shall be read to refer to the Chief Regulatory Officer of Nasdaq ISE; and "Equity Rule" shall be read to refer to a Nasdaq ISE Rule.

Additionally, references in the Nasdaq Rule 9000 Series to the following rules shall be read to refer to the following Nasdaq ISE Rules: "Rule 0120" shall be read to refer to Nasdaq ISE General 1, Section 1 and Options 1, Section 1; "Rule 1013" shall be read to refer to Nasdaq ISE General 3, Section 4 and Section 5; “General 2, Section 11” shall be read to refer to Nasdaq ISE General 3, Section 4(b); “General 9, Section 1” shall be read to refer to Nasdaq ISE Options 9, Section 1; "Equity Rule 2120" shall be read to refer to Nasdaq ISE Options 9, Section 6; and “General 9, Section 2” shall be read to refer to Nasdaq ISE Options 10.

Notwithstanding the above, IM-9216 ("Violations Appropriate for Disposition Under Plan Pursuant to SEC Rule 19d-1(c)(2)") in the BX Rule 9000 Series shall not apply to the Nasdaq ISE Exchange or to its Members, Associated Persons, or other persons subject to the jurisdiction of the Exchange. Instead, the Nasdaq ISE Rule that governs such violations shall be Nasdaq ISE Options 11, Section 1(b) and references in the BX Rule 9000 Series to IM-9216 shall be read to refer to Nasdaq ISE Options 11, Section 1(b). Moreover, the procedures set forth in BX Rule 9216(b) and 9143(e)(3), which shall govern the handling of violations of Rules listed in Nasdaq ISE Options 11, Section 1(b) that are subject to a plan approved by the Commission pursuant to SEC Rule 19d-1(c)(2) (the "Minor Rule Violation Plan" or "MRVP") and the issuance of MRVP letters, shall also apply to the Exchange's handling of violations of Rules listed in Nasdaq ISE Options 11, Section 1(b) that are not subject to the MRVP ("minor rule violations") and the issuance of minor rule violation letters, except that the Exchange shall promptly report any final disciplinary action to the Commission, in accordance with SEC Rule 19d-1(c)(1).

[Adopted June 6, 2019 (SR-ISE-2019-17); amended June 3, 2020 (SR-ISE-2020-22), operative July 3, 2020.]

 
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