Which type of infractions allows the least number of infractions in a quarter?

Category 1 infractions are designated as the most serious violations within the regulatory framework. This categorization typically comes with strict limitations on the number of infractions that can be committed within a given timeframe, such as a quarter. Because they are considered to pose the highest risk to regulatory compliance and overall market integrity, entities are often allowed a minimal number of these infractions, reflecting the need for heightened enforcement and oversight.

Entities operating under this category are usually subject to stricter scrutiny and are required to maintain a high standard of compliance to avoid potential sanctions or penalties. Thus, the low threshold for permissible infractions serves to encourage careful adherence to regulations and discourage irresponsible behavior or repeated violations.

In contrast, the other categories may allow for a greater number of infractions, reflecting a recognition that while violations are still not acceptable, they may not be as severe or indicative of systemic issues. Therefore, Category 1 indeed mandates the fewest allowable infractions in a quarter, underscoring the regulatory emphasis on serious compliance.