SECURITIES AND EXCHANGE COMMISSION v. BINANCE HOLDINGS LIMITED et al Document 117: Motion to Dismiss, Attachment 5

District Of Columbia District Court
Case No. 1:23-cv-01599-ABJ-ZMF
Filed September 21, 2023

MOTION to Dismiss by BAM MANAGEMENT US HOLDINGS INC., BAM TRADING SERVICES INC.. (Attachments: # (1) Memorandum in Support, # (2) Declaration of Matthew Beville, # (3) Exhibit 1, # (4) Exhibit 2, # (5) Exhibit 3, # (6) Exhibit 4, # (7) Exhibit 5, # (8) Text of Proposed Order)(McLucas, William)

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Page 1 Exhibit 3

Page 2 TRADE SURVEILLANCE MANUAL
Version July
CONFIDENTIAL
FOR TRADE SURVEILLANCE USE ONLY

Page 3 TABLE OF CONTENTS
1. Purpose…………………………………………………………………………………...2. Trade Surveillance Program…………………………………………………………..3. Confidentiality…………………………………………………………………………...4. Surveillance Tools………………………………………………………………………5. Automated Trade Surveillance………………………………………………………..6. Alerts………………………………………………………………………………………7. Reports……………………………………………………………………………………8. Review Procedures……………………………………………………………………..9. Disruptive Trading Practices Reviews………………………………………………10. Audit Trail Reviews……………………………………………………………………11. Real-Time Surveillance……………………………………………………………….12. Trade Supervision……………………………………………………………………..13. Emergency Actions……………………………………………………………………14. Recordkeeping Requirements………………………………………………………
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Page 4 PURPOSE
This surveillance manual sets forth the trade monitoring and supervision duties of
Binance.US as part of its regulatory program. The manual is a reference for Binance.US
Trade Surveillance Department (“Department”) personnel performing Trade Surveillance
activities and is governed by Binance.US Exchange (“Exchange”) rules. Content is
subject to change to anticipate upcoming regulatory changes and scenarios. Questions
or concerns should be directed to the Trade Surveillance Manager, Head of Risk, or Chief
Compliance Officer (“CCO”).
TRADE SURVEILLANCE PROGRAM
Under the Commodity Exchange Act (“CEA”) and Commodity Futures Trading
Commission (“CFTC”), Binance.US is subject to the Core Principles of the CEA and
Regulatory Reporting Requirements.
Binance.US Trade Surveillance Program is responsible for trade surveillance to detect
disruptive trading practices, prevent market manipulation, market congestion, and price
distortion. Trade Surveillance licenses Eventus’ Validus surveillance software and tools
to monitor, observe, and review trade lifecycles while addressing all alerts generated
within the Validus platform.
CFTC Core Principle 4 requires exchanges to collect and evaluate market data with the
capacity to prevent disruptions. Binance.US Trade Surveillance Staff (“Staff”) ensures
that the Exchange responds appropriately to the fundamentals of underlying
cryptocurrency markets.
CONFIDENTIALITY
Confidential trade or transaction information should not be included in communications
outside of the Department unless necessary. Staff should avoid including detailed market
participant information and exercise extra caution to send communication only to the
intended recipient. All confidential information sent through electronic files, i.e.,
spreadsheets, screenshots, or documents, should be encrypted and verified to ensure
that the data is associated and directed to the intended recipient. Direct all
2

Page 5 Pages Omitted

PDF Page 1	PlainSite Cover Page

PDF Page 2	Case 1:23-cv-01599-ABJ-ZMF Document 117-5 Filed 09/21/23 Page 1 of 5 Exhibit 3

PDF Page 3	Case 1:23-cv-01599-ABJ-ZMF Document 117-5 Filed 09/21/23 Page 2 of 5 TRADE SURVEILLANCE MANUAL Version 1 July 2021 CONFIDENTIAL FOR TRADE SURVEILLANCE USE ONLY

PDF Page 4	Case 1:23-cv-01599-ABJ-ZMF Document 117-5 Filed 09/21/23 Page 3 of 5 TABLE OF CONTENTS 1. Purpose…………………………………………………………………………………...2 2. Trade Surveillance Program…………………………………………………………..2 3. Confidentiality…………………………………………………………………………...2 4. Surveillance Tools………………………………………………………………………3 5. Automated Trade Surveillance………………………………………………………..3 6. Alerts………………………………………………………………………………………4 7. Reports……………………………………………………………………………………4 8. Review Procedures……………………………………………………………………..5 9. Disruptive Trading Practices Reviews………………………………………………6 10. Audit Trail Reviews……………………………………………………………………6 11. Real-Time Surveillance……………………………………………………………….7 12. Trade Supervision……………………………………………………………………..7 13. Emergency Actions……………………………………………………………………7 14. Recordkeeping Requirements……………………………………………………… 8 1 1

PDF Page 5	Case 1:23-cv-01599-ABJ-ZMF Document 117-5 Filed 09/21/23 Page 4 of 5 PURPOSE This surveillance manual sets forth the trade monitoring and supervision duties of Binance.US as part of its regulatory program. The manual is a reference for Binance.US Trade Surveillance Department (“Department”) personnel performing Trade Surveillance activities and is governed by Binance.US Exchange (“Exchange”) rules. Content is subject to change to anticipate upcoming regulatory changes and scenarios. Questions or concerns should be directed to the Trade Surveillance Manager, Head of Risk, or Chief Compliance Officer (“CCO”). TRADE SURVEILLANCE PROGRAM Under the Commodity Exchange Act (“CEA”) and Commodity Futures Trading Commission (“CFTC”), Binance.US is subject to the Core Principles of the CEA and Regulatory Reporting Requirements. Binance.US Trade Surveillance Program is responsible for trade surveillance to detect disruptive trading practices, prevent market manipulation, market congestion, and price distortion. Trade Surveillance licenses Eventus’ Validus surveillance software and tools to monitor, observe, and review trade lifecycles while addressing all alerts generated within the Validus platform. CFTC Core Principle 4 requires exchanges to collect and evaluate market data with the capacity to prevent disruptions. Binance.US Trade Surveillance Staff (“Staff”) ensures that the Exchange responds appropriately to the fundamentals of underlying cryptocurrency markets. CONFIDENTIALITY Confidential trade or transaction information should not be included in communications outside of the Department unless necessary. Staff should avoid including detailed market participant information and exercise extra caution to send communication only to the intended recipient. All confidential information sent through electronic files, i.e., spreadsheets, screenshots, or documents, should be encrypted and verified to ensure that the data is associated and directed to the intended recipient. Direct all 2

PDF Page 6	Case 1:23-cv-01599-ABJ-ZMF Document 117-5 Filed 09/21/23 Page 5 of 5 Pages Omitted


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