Whole Section

  • 3.5 Inspection and Audit

    • 3.5.1 Scope of Inspection and Audit Rights

      The Exchange, in its discretion, may inspect, audit and take copies of the accounts, books, contracts and other records and documents of that Member to the extent that is necessary or desirable in connection with the discharge of the Exchange's regulatory obligations. The Exchange may also appoint or cause the Member to appoint independent Persons to do the same. Such Person shall report to the Exchange on all or any of the following:

      (a) whether that Member's accounts are being kept and maintained in compliance with this Rules;
      (b) whether that Member's financial position is being maintained in compliance with this Rules;
      (c) whether that Member's business is being conducted in compliance with this Rules;
      (d) whether that Member's accounts, financial position or any non-compliance with this Rules may jeopardize the integrity of the Exchange; and
      (e) such other matter as the Exchange may direct.
    • 3.5.2 Access and Cooperation

      A Member shall cooperate with the Exchange and procure for the Exchange or the duly appointed Person:

      (a) access to its premises or its affiliates' premises, as applicable, to carry out on-site inspections during normal business hours;
      (b) access to the appropriate person for any queries or interviews which the Exchange or the duly appointed Person wishes to conduct in connection with its audit;
      (c) any information or documents which the Exchange or the duly appointed Person considers appropriate for the purpose of investigations; and
      (d) its Customers' full cooperation with the Exchange.

      Amended on 2 May 20162 May 2016.

    • 3.5.3 Use of Report and Costs

      The Exchange may rely on the information obtained and reports prepared pursuant to Rule 3.5.1 and act on the recommendations set forth therein. The Exchange may also refer a report prepared pursuant to Rule 3.5.1 to the Clearing House or Disciplinary Committee for further action if appropriate. The Exchange may charge a fee for any inspection under Rule 3.5.1. The fee is payable immediately by the Member concerned.