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Market Governance Structure
Market Governance Board (MGB)
The Market Governance Board (MGB) is composed of nine governors, with four governors representing different market sectors covered by securities regulations [issuers, intermediaries (dealers and brokers), and investors], four independent governors, and a governor representing PDEx as market operator. The MGB is responsible for creating and enhancing existing rules that will benefit its Market.
The MGB operationalizes its rule-making function through its standing Committees, each chaired by an Independent Governor. These Standing Committees include: (a) the Trading Committee as the forum for dealers and brokers; (b) the Settlement Committee as the forum for settlement officers; (c) the Listing Committee as the forum for heads of underwriting units; and (d) the Systemic Risk Committee as the forum for the chief risk officers of the PDEx Trading Participants. The creation of focus areas is intended to ensure that each forum dedicates time and study to areas within the expertise and experience of its members so that the resulting regulations are relevant and practical.
Market Compliance and Enforcement Committee (MCEC)
The regulatory enforcement role of PDEx is carried out by the MRSG as the front line unit and the MCEC. The MRSG performs surveillance and detection procedures, and carries out the actions mandated by the MCEC in disciplinary matters.
The MCEC performs the disciplinary process of the SRO, according parties due process in the conduct of proceedings, making findings of fact in cases brought before it by the MRSG, and adjudicating the said cases, including the imposition of sanctions in accordance with the PDEx Rules as warranted by the facts.
Given the need for impartiality in performing this function, and a heightened sensitivity to confidentiality in the proceedings, the MCEC is composed only of independent governors, and the market operator who has a key interest in ensuring that the delivery of impartial justice is carried out.
Market Regulatory Services Group (MRSG)
The Market Regulatory Services Group (MRSG), the operating unit within PDEx supporting both rule-making and enforcement activities of the SRO, continues with its activities of regulation, compliance and surveillance, investigation and enforcement, and examination.