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Equity Minor Rule Violations
A. MISCELLANEOUS
A-1 Record of Orders on PSX

Member organizations which act as brokers on PSX shall make and maintain the memorandum described in rule 17a-3(a)(6) and Rule 17a-4(b)(1) for all orders and partial orders that they enter on PSX in which they act as brokers.

FINE SCHEDULE (Implemented on a one year running calendar basis)

1st Occurrence

$100.00

2nd Occurrence

$250.00

3rd Occurrence

$500.00

4th and Thereafter

Sanction is discretionary with Phlx Regulation Department, Department of Market Regulation, or Department of Enforcement

Amended.

December 21, 1999 (99-38).

September 28, 2006 (06-43).

April 25, 2011 (11-13).

November 15, 2017 (17-92), operative January 2, 2018.

A-2 Failure to Comply with an Exchange Inquiry

Each member, member organization, or associated person is required to promptly comply with any request of information made by the Exchange in connection with any regulatory inquiry, investigation or examination relating to the Exchange's disciplinary jurisdiction or regulatory obligations.

For the purposes of this Advice, information received within ten business days from the date of the original request shall be deemed to meet the requirement of prompt compliance, except, for purposes of Exchange requests, information received within two business days from the date of the original request shall be deemed to meet the requirement of prompt compliance.

The Exchange may under extenuating circumstances grant extensions to allow for responses beyond the allotted requirement. Requests for extensions must be submitted in writing to the appropriate department prior to the due date of the outstanding request. Each additional request for information not furnished within the allotted time periods may be considered a separate occurrence for purposes of the fine schedule below.

FINE SCHEDULE (Implemented on a three year running calendar basis)

1st Occurrence

$200.00

2nd Occurrence

$1,000.00

3rd Occurrence

$2,500.00

4th and Thereafter

Sanction is discretionary with Phlx Regulation Department, Department of Market Regulation, or Department of Enforcement

Amended.

May 4, 1995 (94-61).

April 25, 2011 (11-13).

November 15, 2017 (17-92), operative January 2, 2018.

A-3 Supervisory Procedures Relating to ITSFEA

(a) Member organizations must maintain written supervisory procedures as required by the Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA). Such procedures must be reasonably designed to prevent the misuse of material, non-public information by employees.

(b) In addition to the requirements under ITSFEA, the Exchange herein institutes basic minimum standards for incorporation into ITSFEA-related written supervisory procedures for all member organizations. The requirements enumerated below must be included and, together with all related additional written supervisory procedures maintained in accordance with paragraph (a) above, must receive approval by the Exchange. These requirements are not intended to supersede, or be presumed to fulfill, the requirements of ITSFEA. These requirements are instead set forth as separate requirements of the Exchange.

In the instance where written a member organization is subject to written supervisory procedures relating to ITSFEA imposed by another self regulatory organization which is it designated examining authority ("DEA"), the Exchange requirements set forth in paragraph (b) of this Advice will not apply.

1.) Each new employee of the organization shall be furnished with a copy of the most current version of the Exchange's "Notice of Insider Trading" (Notice), or a document substantially similar to the Notice approved by the DEA for use in this connection. Within ten business days from the first date of employment with the Unit, each new employee must sign and return the Notice to the employer. By his signature on the Notice, the employee attests to having carefully read the Notice and agrees to appropriately supply the employer firm with all trading accounts for which such person maintains a beneficial interest, including all personal and household accounts of the employee. Also, by his signature on the Notice, each new employee ensures that delivery of all related account statements will be made directly from the firm(s) maintaining the account to the employer.

2.) Each organization must complete the Exchange's "ITSFEA Accounts List," comprising all accounts submitted in connection with paragraph (1) above and all proprietary accounts of the Unit. Updates to the list must be made within one month of any change and each completed version of the list must be maintained for no less than three years by the organization.

3.) Each month a supervisory person of the organization is required to make a reasonable review of all activities from the account statements of those accounts reflected on the ITSFEA Accounts List with a view toward identifying the possible misuse of material non-public information. A report must be made promptly to the Exchange's Regulatory staff in the event that any such unusual profits are so identified.

For purposes of paragraph (b) of this Advice, an employee shall include every person who is compensated directly or indirectly by the member organization for the solicitation or handling of business in securities, including trading securities for the account of the member organization, whether such securities are those dealt in on the Exchange or those dealt over-the-counter.

Failure to properly maintain the ITSFEA Accounts List, or to conduct related reviews required by this Advice, may result in the issuance of fines in accordance with the schedule below.

FINE SCHEDULE (Implemented on a three year running calendar basis)

1st Occurrence

$250.00

2nd Occurrence

$500.00

3rd and Thereafter

Sanction is discretionary with Phlx Regulation Department, Department of Market Regulation, or Department of Enforcement

Amended.

December 18, 1997 (97-39).

April 25, 2011 (11-13).

November 15, 2017 (17-92), operative January 2, 2018.

A-4 Fingerprinting Personnel

Member organizations are required to comply with Section 17(f) of the Securities Exchange Act of 1934 respecting the fingerprinting of required employees. Applicants for a permit must also be fingerprinted. Such fingerprints must be submitted to FINRA for identification and appropriate processing prior to any employee performing the functions listed in SEC rule 17f-2.

FINE SCHEDULE

1st Occurrence

$50.00

2nd Occurrence

$100.00

3rd Occurrence

$250.00

4th and Thereafter

Sanction is discretionary with Phlx Regulation Department, Department of Market Regulation, or Department of Enforcement

Amended.

October 6, 1995 (95-49).

April 6, 2006 (06-15).

September 28, 2006 (06-43).

December 18, 2006 (06-83).

April 25, 2011 (11-13).

November 15, 2017 (17-92), operative January 2, 2018.

A-6 Failure to Provide Notification of Changes in Business Operations

Any member organization for which the Exchange is the Designated Examining Authority ("DEA") shall provide prior written notification to the Exchange or its designee of any change in the business operations of such member organization which would cause the member organization to be subject to additional or modified net capital requirements, examination schedules or other registration, examination or regulatory requirements.

For the purposes of this Advice, the appropriate time frame for notification is at least 10 business days prior to the change in business operations.

FINE SCHEDULE (Implemented on a three year running calendar basis)

1st Occurrence

$250.00

2nd Occurrence

$500.00

3rd Occurrence

$1,000.00

4th and Thereafter

Sanction is discretionary with Phlx Regulation Department, Department of Market Regulation, or Department of Enforcement

Adopted.

November 21, 2001 (01-68).

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

November 15, 2017 (17-92), operative January 2, 2018.

A-7 Failure to Timely Submit Amendments to Form U4, Form U5 and Form BD

Any member organization that is required to file Form U4, Form U5 or Form BD pursuant to Exchange Rules or the Securities Exchange Act of 1934 and the rules promulgated thereunder, is required to amend the applicable Form U4, Form U5 or Form BD to keep such forms current at all times. Member organizations shall amend Form U4, Form U5 or Form BD not later than thirty (30) days after the filer knew or should have known of the facts which gave rise to the need for the amendment.

FINE SCHEDULE (Implemented on a running 12 month period)

1st Occurrence

$500.00

2nd Occurrence

$1,000.00

3rd Occurrence

$2,000.00

4th and Thereafter

Sanction is discretionary with Phlx Regulation Department or Department of Enforcement

Adopted.

April 6, 2006 (06-15).

Amendments.

December 18, 2006 (06-83).

April 25, 2011 (11-13).

April 20, 2012 (12-23).

November 15, 2017 (17-92), operative January 2, 2018.

September 27, 2018 (18-61), operative October 1, 2018.

E. STAFFING

Adopted.

September 27, 1991 (91-29).

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

F. MISCELLANEOUS
F-1 Deleted

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

F-9 Deleted

Amended.

April 25, 2011 (11-13).

F-27 Deleted

Adopted.

May 7, 1998 (98-3).

Amended.

June 16, 2006 (05-42).

September 28, 2006 (06-43).

April 25, 2011 (11-13).

F-31 Deleted

Adopted.

February 15, 2001 (00-48).

April 25, 2011 (11-13).

S. PRE-OPENING PROCEDURES

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

RULE 60 REGULATIONS
Regulation 1 Deleted

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 2 Deleted

Amended.

June 23, 1994 (94-13).

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 3 Deleted

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 4 Deleted

Amended.

July 28, 1994 (94-14).

July 8, 2002 (02-09).

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 5 Deleted

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 6 Deleted

Amended.

May 4, 1995 (95-24).

September 28, 2006 (06-43).

April 25, 2011 (11-13).

Regulation 7 Deleted

Amended.

September 28, 2006 (06-43).

April 25, 2011 (11-13).

 
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