Chapter 6 — Delivery and Related

Rule Violation Whether composition may be offered Composition Amount which may be Offered by the Clearing House, where the Clearing House has Determined the Clearing Member to be Liable Mandatory minimum penalty imposable by the DC
Rule Chapter/Number Brief Description of Rule 1st Violation 2nd Violation 3rd Violation
Chapter 6 — Delivery and Related
6.02A.1 Clearing Member to cause compliance with relevant delivery obligations Not Compoundable Not Compoundable $10,000
6.02A.2 Clearing Member to guarantee and assume complete responsibility for performance of all Delivery Obligations Not Compoundable Not Compoundable $10,000
6.02A.10 Clearing Member to notify the Clearing House of an occurrence of Force Majeure relevant to the performance of Delivery Obligations Not Compoundable Not Compoundable $10,000
6.03.1 Clearing Member not to default on delivery Not Compoundable Not Compoundable $10,000
6.04.1 Clearing Member to require evidence from its Seller or Buyer that all open positions which are not offset on the Last Trading Day will be completed by delivery Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6.04.2 Clearing Member to liquidate open positions on or before LTD if the Seller or Buyer fails to provide evidence that all open positions wil be completed by delivery Not Compoundable Not Compoundable $10,000
6.07.1 Clearing Member to post with Clearing House as escrow agent a Performance Deposit or other payment which may be prescribed under Contract Specifications as security for benefit of Buyer or Seller who is counterparty to delivery contract Not Compoundable Not Compoundable $10,000
6.07.2 Clearing Member to collect Performance Deposits or escrow assets within such time as prescribed in the Contract Specifications or by the Clearing House Not Compoundable Not Compoundable $10,000
6.07.3 Clearing Member not to grant any advance, loan, credit facility to Seller/Buyer for purpose of posting Performance Deposits/Escrow Assets Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6.07A Clearing Member to perform Delivery Obligations through the Facilitator Agent as prescribed by the Clearing House. Not Compoundable Not Compoundable $10,000

Added on 16 May 201116 May 2011.