Member inspection policy mandates targeted risk based and periodic inspections with coordinated oversight between exchanges and clearing corporations. Policy requires mandatory inspections of members showing high risk indicators-such as repeated fund or margin disablements, significant reporting breaches, elevated investor complaints, or adverse internal audit findings-irrespective of prior inspection timing; mandates clearing activity oversight by Clearing Corporations, allows joint inspections, requires exchanges to adopt risk based selection policies, continuously reassess member risks, share inspection outcomes across exchanges for multi member brokers, and refer repetitive or serious violations to the regulator.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Member inspection policy mandates targeted risk based and periodic inspections with coordinated oversight between exchanges and clearing corporations.
Policy requires mandatory inspections of members showing high risk indicators-such as repeated fund or margin disablements, significant reporting breaches, elevated investor complaints, or adverse internal audit findings-irrespective of prior inspection timing; mandates clearing activity oversight by Clearing Corporations, allows joint inspections, requires exchanges to adopt risk based selection policies, continuously reassess member risks, share inspection outcomes across exchanges for multi member brokers, and refer repetitive or serious violations to the regulator.
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