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"You can observe a lot just by watching." Yogi Berra

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Appeal of Philadelphia Exchange Sanctions Dismissed

Penmont Securities, Joseph D. Carapico, Exchange Act Rel. 61967, April 23, 2010

Carapico and Penmont appealed their suspensions by the Philadelphia Stock Exchange for failure to pay legal fees and expenses assessed against them by the PHLX in connection with a suit they had brought against the exchange. PHLX argued the appeal should be dismissed as it was filed after the 30 day deadline and there were no extraordinary circumstances justifying an extension of time.

The suit was begun in 1998 and involved ownership and organizational changes at the PHLX. The Commission ruled that Penmont and Carapico had not complied with the 30 day appeal deadline. It also rejected the plea for an extraordinary circumstances exemption from the deadline. The Commission construed that exemption as requiring circumstances beyond the control of the applicant. Here the applicants were notified of their right to appeal to the Commission but chose instead to bring an action in federal court instead of promptly appealing.