17 CFR 170.6 : Commodity And Securities Exchanges (§ 1.1 To Parts 451-499) — (§ 41.1 To Parts 191-199) — Commodity Futures Trading Commission (Continued) (§ 41.1 To Parts 191-199) — Registered Futures Associations (§ 170.1 To § 170.17) — Standards Governing Commission Review Of Applications For Registration As A Futures Association Under Section 17 Of The Act (§ 170.1 To § 170.10) — Disciplinary proceedings (sections 17(b)(8) and (b)(9) of the Act).

A futures association must provide a fair and orderly procedure with respect to disciplinary actions brought against association members or persons associated with members. These rules governing such disciplinary actions shall contain, at a minimum, the procedural safeguards contained in section 17(b)(9) of the Act. In addition, an association, in disciplining its members should demonstrate that it will:

(a) Take vigorous action against those who engage in activities in violation of association rules;

(b) Conduct proceedings in a manner consistent with the fundamental elements of due process; and

(c) Impose discipline which is fair and has a reasonable basis in fact.