Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
Chapter 1 Application of Rules
Chapter 2 Clearing Membership
Chapter 3 Committees
Chapter 4 Enforcement of Rules
Chapter 5 Arbitration
Chapter 6 Delivery and Related Matters
Chapter 7 Clearing and Margins
Chapter 7A Suspension and Default
Chapter 7B Payments
Chapter 8 Mutual Offset System
Chapter 9 Definitions and Interpretation
Chapter 10 Transitional Provisions
Directives
Practice Notes
Appendices
Schedules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
Rule Amendments

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  • Chapter 6 Delivery and Related Matters

    • 6.01 General

      • 6.01.1

        Any delivery of Commodities under any Contract cleared by the Clearing House shall be made in accordance with the relevant Contract Specifications and, if not so dealt with, with the provisions of this Chapter and by such other requirements as the Clearing House may prescribe from time to time (collectively "Delivery Rules").

        Amended on 22 September 2006 and 1 October 2009.

      • 6.01.1A

        In the case of a Contract traded on the Exchange, the Delivery Rules shall include the Trading Rules.

        Added on 1 October 2009.

      • 6.01.1B

        For the avoidance of doubt, this Chapter shall apply in respect of all matters relating to the rights, obligations and liabilities of the Clearing House as against any Clearing Member, regardless of the Relevant Market on which the Contract is traded, unless otherwise provided under this Chapter.

        Added on 1 October 2009.

      • 6.01.1C

        Eligible Non-Relevant Market Contracts shall be settled or delivered in accordance with the relevant Delivery Rules.

        Added 27 March 2006 and amended on 22 September 2006, 1 October 2009 and 8 November 2012.

      • 6.01.2

        Cash-settled Contracts which remain open at maturity may be satisfied by payment of cash.

        Any Contracts other than cash-settled Contracts which remain open at maturity may be liable to delivery in accordance with the Delivery Rules.

        Amended on 22 September 2006.

      • 6.01.3.1 to 6.01.4 [Rules have been deleted.]

        Deleted on 22 September 2006.

    • 6.02 [Rule has been deleted.]

      Deleted on 22 September 2006.

    • 6.02A Clearing House Merely Facilitates Delivery

      • 6.02A.1 Clearing Member Causes Compliance with and Guarantees Delivery Obligations

        A Clearing Member sponsoring a Trading Member, or a member of any other Relevant Market, carrying an account for a Seller or Buyer or a Clearing Member carrying an account for a Seller or Buyer shall cause its Seller or Buyer (as the case may be) to comply with all relevant Delivery Obligations for the underlying Commodity under a Contract or delivery contract including those relating to the delivery of information, documents or the underlying Commodity to the Clearing House or to clearing members of the opposite Buyer or Seller (hereafter referred to as the "counterparty clearing member" for the purposes of this Chapter), and shall comply with all time limits in accordance with the Delivery Rules.

        For the avoidance of doubt, a counterparty clearing member referred to in this Chapter and Rule 7.04.1B shall include a Clearing Member and the clearing member of any other Relevant Market (or its clearing house) of the opposite Buyer or Seller notwithstanding that such counterparty clearing member is not a Clearing Member.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.2

        A Clearing Member sponsoring a Trading Member, or a member of any other Relevant Market, carrying an account for a Seller or Buyer or a Clearing Member carrying an account for a Seller or Buyer shall guarantee and assume complete responsibility to the counterparty clearing member, for the performance of all Delivery Obligations in accordance with the relevant Delivery Rules.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.3

        Violation of Rule 6.02A.1 or Rule 6.02A.2 may constitute a major offence.

        Added on 22 September 2006.

      • 6.02A.4 Insolvent Clearing Member

        In the event of the Clearing House becoming aware of a Clearing Member becoming insolvent or being deemed insolvent after having given any relevant delivery notices or acceptance notices with respect to its Delivery Obligations to the Clearing House, then, notwithstanding the preceding, the Clearing House shall be entitled but not obliged to permit the relevant Sellers or Buyers (as the case may be) of the Clearing Member (if their identities can be readily ascertained and verified) to be directly substituted for such Clearing Member to the extent necessary to effect and/or complete delivery. None of the requirements for delivery, including notices, instructions, payment, etc., shall be waived by the Clearing House in exercising such option. Moreover, substitution shall in no way relieve the insolvent Clearing Member of its obligations to the Clearing House and/or the counterparty clearing member with regard to any claims arising out of that delivery.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.5

        For the purposes of Rule 6.02A, a Clearing Member becomes or shall be deemed insolvent on the occurrence of any of the events stated in Rule 7A.01.3.

        Added on 22 September 2006 and amended on 7 August 2012.

      • 6.02A.6 No Physical Delivery Obligations on Clearing House

        Except as otherwise provided in this Rules, the Clearing House accepts no and is to have no liability either to effect or ensure or guarantee the discharge or satisfactory discharge of any obligation under a delivery contract. The obligations of the Clearing House with respect to the delivery contract shall be limited only to the discharge of its escrow obligations (where applicable) in accordance with this Rules and/or the relevant Contract Specifications. For the avoidance of doubt, Rule 7.04 does not apply to any delivery contract.

        Added on 22 September 2006 and amended on 26 January 2007.

      • 6.02A.7 Matching and Re-Novation

        a. The contract between a Selling Member or Buying Member and the Clearing House shall be novated and a new contract shall arise between such persons as are matched in accordance with the relevant Contract Specifications (such process being described as "re-novation") at such time, and upon such conditions being met, in accordance with the relevant Contract Specifications for:
        (i) such re-novation to be effective; or
        (ii) the cessation of the Clearing House as a central counterparty.
        b. The new contract arising from the re-novation shall simultaneously discharge and replace pro tanto the Contract between the Selling Member or Buying Member and the Clearing House, and the Clearing House shall be released from its obligations as a central counterparty. For the avoidance of doubt, re-novation only applies to matched positions relating to lot sizes equal to or more than the minimum size prescribed under the relevant Contract Specifications for physical delivery.

        Added on 22 September 2006 and amended on 26 January 2007, 1 October 2009, 22 February 2010 and 22 April 2010.

      • 6.02A.7A Cash Settlement

        Without prejudice to Rule 6.09, unless otherwise provided in the relevant Contract Specifications, matched positions of lot sizes less than the minimum size prescribed under the relevant Contract Specifications for physical delivery existing after the matching process in Rule 6.02A.7 has been effected, shall be cash-settled in accordance with the relevant Contract Specifications.

        Added on 26 January 2007.

      • 6.02A.7B Posting of Performance Deposits and Payment of Contract Value

        Unless otherwise provided in the relevant Contract Specifications, Performance Deposits and contract value shall, for the purposes of Rule 6.02A.7 and Rule 7.04.3.3, be deemed to have been posted or paid as follows:

        6.02A.7B.1 where posting or payment is in cash, upon Confirmation of the relevant Payment Instruction by the Settlement Bank of such Clearing Member that is undertaking Delivery Obligations in a delivery contract; and
        6.02A.7B.2 where posting or payment is in the form of an irrevocable letter of credit or any other security, upon receipt of the irrevocable letter of credit or other security by the Clearing House, provided that the said irrevocable letter of credit or other security is in a form and issued by a bank acceptable to the Clearing House.

        Added on 22 February 2010 and amended on 26 April 2013.

      • 6.02A.8 Method of Matching

        6.02A.8.1 Contracts subject to physical delivery shall be matched by the Clearing House in accordance with the relevant Contract Specifications.
        6.02A.8.2 Notwithstanding Rule 6.02A.8.1, Contracts traded on the Exchange and subject to physical delivery shall be matched by the Clearing House based on the quantity, lot size and the mutual preference(s) (if any) stated by the Seller and Buyer (through their respective Clearing Members). Failing mutuality of preferences, matching shall be in accordance with the preference(s) of the Seller or Buyer, as the case may be, as stated in the relevant Contract Specifications.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.9 Forms for Matching

        The Clearing House may prescribe such forms and/or other requirements for the giving of relevant notice, initiating and/or completing delivery under a Contract and/or necessary to enable the Clearing House to effect the required matching of the relevant parties to effect delivery as between them as are consistent with the relevant Delivery Rules. If a Clearing Member fails to give the relevant delivery notice or acceptance notice within the prescribed time, the Clearing House shall be entitled to match such Clearing Member with the relevant counterparty. Matching may be in accordance with the preference(s) of such opposite counterparty.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.9A Notification of Matching

        The Clearing House shall notify the relevant matched parties in such manner and at such time as specified in the relevant Contract Specifications.

        Added on 1 October 2009.

      • 6.02A.10 Force Majeure

        6.02A.10.1 Unless the delivery provisions in the relevant Contract Specifications otherwise provide, the Delivery Obligations of Contracts shall be absolute and unconditional and shall not be subject to the defence of Force Majeure, impossibility, commercial impracticability or other similar defences. Notwithstanding the preceding, if delivery or acceptance or any precondition or requirement of the Buying Member or Selling Member as the case may be is prevented or threatened to be prevented as a consequence of or arising out of an occurrence of Force Majeure relevant to performance of Delivery Obligations such that performance of such Delivery Obligations cannot be guaranteed by reason of such occurrence of Force Majeure, such Selling Member or Buying Member as the case may be shall immediately notify the Clearing House.
        6.02A.10.1A If the Clearing House determines that emergency action may be necessary, it shall take such action as it deems fit in accordance with the relevant Contract Specifications.
        6.02A.10.1B Notwithstanding Rule 6.02A.10.1A, in the case of a Contract traded on the Exchange, the Clearing House shall call a special meeting with the Exchange and arrange for the presentation of evidence with respect to the occurrence of Force Majeure. If the Clearing House and the Exchange determine that a Force Majeure exists, the Clearing House and the Exchange shall take such action as they see fit, including but not limited to the deferment of delivery dates and the designation of alternate delivery points.
        6.02A.10.1C For the purposes of this Rule 6.02A.10, Force Majeure shall have the meaning as set forth in the relevant Contract Specifications or the rules of the Relevant Market on which the Contract was traded.
        6.02A.10.1D Notwithstanding Rule 6.02A.10.1C, in the case of a Contract traded on the Exchange, Force Majeure means any event beyond the control of a Seller or Buyer or its respective Clearing Member including acts of a civil or military authority, labour disputes, strikes, fires, floods, epidemic diseases, accidents, wars (whether declared or undeclared), acts of the public enemy, riots, perils of the sea, embargoes, restrictions imposed by any governmental authority (including allocations, priorities, requisitions, quotas and price controls) or any other acts of God.
        6.02A.10.2 Without prejudice to Rule 6.02A.10.1 to Rule 6.02A.10.1D, in the event that the Clearing House and/or the Exchange determine that for any reason whatsoever there exists or is likely to come into existence a shortage of the underlying Commodity or circumstances prejudicial to a Seller or Buyer or it's respective Clearing Member's Delivery Obligations the Clearing House and/or the Exchange may take such action as may appear necessary to prevent, correct, or alleviate such shortage, subject to the provisions in the relevant Contract Specifications for such shortage, if any.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.02A.11 Cessation of Collection of Margins

        The Clearing House shall cease to collect margins for a Contract after such time as it ceases to act as a central counterparty pursuant to Rule 6.02A.7 or Rule 6.09.3.

        Added on 22 September 2006 and amended on 26 January 2007.

      • 6.02A.12 Electronic Documentation

        The Clearing House retains the discretion to accept delivery of Title Documents in either physical or electronic format and subject to such safeguards as it deems fit.

        Added on 22 September 2006.

      • 6.02A.13 Clearing House does not Verify Authenticity of Documents or Check Commodity

        The Clearing House shall have no responsibility or liability to any person:

        6.02A.13.1 to investigate, verify or guarantee the authenticity, validity, accuracy, or completeness of:—
        (a) any form or document required by it for the required matching of:
        (i) the relevant parties in accordance with the Contract Specifications; or
        (ii) a Seller or Buyer for whom an insolvent clearing member acts and the counterparty clearing member; or
        (b) any Title Documents received by the Clearing House under the relevant Contract Specifications,
        to effect delivery as between such matched parties as are consistent with the relevant Delivery Rules. Nonetheless, the Clearing House reserves the right at its discretion and in good faith to reject any form or accompanying documents submitted by a Clearing Member for such matching, delivery or any other purposes if in its good faith view, the form or accompanying documents (or, where relevant, payment) as submitted are not in compliance with its stated requirements or otherwise indicate that the delivery to be effected or accepted are not in compliance with the relevant Delivery Rules;
        6.02A.13.2 to check any Commodity received from or delivered to the clearing member of a Buyer or Seller in relation to the quality or suitability of fitness of the Commodity and the obligation of the Seller or Buyer, or its clearing member, to make or take delivery under a delivery contract; and
        6.02A.13.3 with respect to any forged or irregular documents, including Title Documents, relating to any open contract and delivery contract, received from or delivered to the clearing member of a Buyer or Seller. The sole recourse of the Clearing Member receiving such forged or irregular documents shall be to the clearing member which delivered or caused to be delivered such forged or irregular documents.

        Added on 22 September 2006 and amended on 26 January 2007 and 1 October 2009.

      • 6.02A.14 Clearing House does not Check and is not Liable for Designated Delivery Facility

        The Clearing House shall have no responsibility or liability to any person:

        6.02A.14.1 to check the availability, suitability or quality of any designated delivery facility, producer, factory, port, grader, surveyor, sampler, analyst or any other organization that may be involved with delivery of any Commodity as identified in the relevant Contract Specifications; and
        6.02A.14.2 for the acts, omissions, default or insolvency of any designated delivery facility, producer, factory, port, grader, surveyor, sampler, analyst or any other organization that may be involved with delivery of any Commodity as identified in the relevant Contract Specifications.

        Added on 22 September 2006 and amended on 26 January 2007.

      • 6.02A.15 Disclaimers

        6.02A.15.1 Title Documents and Transfer of Title or Possession
        The Clearing House disclaims any liability arising from or in connection with the delivery or non-delivery of Title Documents by the clearing member of any Seller and any irregularities in the transfer of title and/or possession in the underlying Commodity from the Seller to the Buyer.
        6.02A.15.2 Release of Payment
        In no event shall the Clearing House be liable for releasing any payment in exchange for documents that appear bona fide on their faces.

        Added on 22 September 2006 and amended on 26 January 2007 and 1 October 2009.

    • 6.03 Delivery Default May be Major Offence

      • 6.03.1

        Any delivery default under the relevant Contract Specifications may constitute a major offence.

        Added on 22 September 2006.

      • 6.03.2

        Without prejudice to Rule 6.03.1, the Clearing House may take such disciplinary action including imposing penalties in connection with the performance of Delivery Obligations as provided for under the relevant Contract Specifications. For the avoidance of doubt, penalties which the Clearing House may impose shall include penalties for any delivery default or late performance of any Delivery Obligation.

        Added on 1 October 2009.

    • 6.04 Duty of Clearing Members to Mitigate Risk of Non-Delivery

      • 6.04.1

        Prior to the Last Trading Day of the relevant Contract, each Clearing Member shall require evidence from its respective Seller or Buyer having accounts on its books, that all open positions which will not be offset on the Last Trading Day will be completed by delivery of the relevant underlying Commodity. If the Seller or Buyer fails to provide such evidence, the Clearing Member shall, unless entitled to opt otherwise under the relevant Contract Specifications, liquidate the remaining open positions on or before the Last Trading Day. Unless otherwise permitted under the relevant Contract Specifications, each Clearing Member shall liquidate any and all open positions relating to lot sizes less than the minimum size prescribed under the relevant Contract Specifications for physical delivery.

        Added on 22 September 2006 and amended on 7 December 2015.

      • 6.04.2

        Failure by a Clearing Member to liquidate the open positions pursuant to Rule 6.04.1 may constitute a major offence.

        Added on 22 September 2006.

    • 6.05 Consolidation of Positions and Other Powers of the Clearing House

      • 6.05.1

        If at any time the Clearing House becomes aware of opposite open positions held by different Clearing Members, or by any Clearing Member and clearing member of any other Relevant Market (or its clearing house), for the account of the same Seller or Buyer, the Clearing House may (but is not obliged to) direct such Clearing Members to take steps to liquidate the offsetting positions.

        Added on 26 January 2007 and amended on 1 October 2009.

      • 6.05.2

        Where a Seller or Buyer has open positions with more than one Clearing Member, or with any Clearing Member and any clearing member of any other Relevant Market (or its clearing house) on the first Business Day following the Last Trading Day, the Clearing House may (but is not obliged to) consolidate all such open positions held by all the Clearing Members and clearing members of such other Relevant Market (or its clearing house) for the same Seller or Buyer in such manner as it deems fit including, without limitation, effecting the following:

        6.05.2.1 appointing one (1) or more of these Clearing Members to whom all such positions shall be transferred to be handled for such Seller or Buyer, where such appointment shall be binding;
        6.05.2.2 requiring any Clearing Member to transfer positions to one (1) or more such clearing members of the other Relevant Market to be handled for such Seller or Buyer;
        6.05.2.3 setting-off any opposite open positions held by the appointed Clearing Member(s) for the account of the same Seller or Buyer; and/or
        6.05.2.4 taking such other actions or giving such other directions to the appointed Clearing Member(s) as it deems fit.

        Added on 22 September 2006 and amended on 26 January 2007 and 1 October 2009.

      • 6.05.3

        Notwithstanding that the Clearing House is entitled to consolidate the open positions of the Clearing Members and the clearing members of any other Relevant Market (or its clearing house) with reference to the account of the Seller or Buyer, nothing in Rule 6.05.2 shall imply or be construed to mean that a Seller or Buyer (who is not a Clearing Member) shall have any right against the Clearing House with regard to its open positions which have been so consolidated.

        Amended on 26 January 2007 and 1 October 2009.

    • 6.06 Passing of Property and Risk

      • 6.06.1

        Property and risk in relation to an underlying Commodity in any delivery contract shall pass in accordance with the relevant Delivery Rules and if not so dealt with, with the provisions of the Sale of Goods Act (Chapter 393). For the avoidance of doubt, at no time will property and risk in any underlying Commodity in any delivery contract pass to the Clearing House.

        Added on 22 September 2006.

    • 6.07 Deliveries Involving Clearing House as Escrow Agent and Treatment of Performance Deposits, Other Payments and Other Escrow Assets

      Amended on 26 April 2013.

      • 6.07.1

        If so required under the relevant Contract Specifications, a Selling Member and/or Buying Member in a delivery contract shall post or cause its respective Seller or Buyer to post with the Clearing House as escrow agent a Performance Deposit and/or other payment (including but not limited to contract value) as may be prescribed under the relevant Contract Specifications (such person responsible for posting the Performance Deposit or other payment being referred to as the "depositing party"), at such time as provided under the relevant Contract Specifications, as security for the benefit of the counterparty under the delivery contract for the performance of the depositing party's obligations under the delivery contract. For the avoidance of doubt, posting of Performance Deposits or other payments by the depositing party is to be made without any set-off or withholding.

        Added on 22 September 2006 and amended on 26 January 2007, 1 October 2009 and 26 April 2013.

      • 6.07.2

        A Selling Member or Buying Member shall collect Performance Deposits, other payments and other Escrow Assets (where applicable) from its respective Seller or Buyer within such time as prescribed in the relevant Contract Specifications, or by the Clearing House. Nothing herein prohibits a Member from collecting additional monies or deposits from its Seller or Buyer to secure performance as it sees fit.

        Added on 22 September 2006 and amended on 26 January 2007, 22 February 2010, 26 January 2007, 1 October 2009 and 26 April 2013.

      • 6.07.3

        No Clearing Member shall grant, whether directly or indirectly, any advance, loan or credit facility to any Seller or Buyer for the purpose of posting Performance Deposits, other payments or other Escrow Assets (where applicable) with the Clearing House. For avoidance of doubt, Members shall only post the full sum of Performance Deposits, other payments and/or other Escrow Assets (where applicable) with the Clearing House.

        Added on 22 September 2006 amended on 26 January 2007, 22 February 2010 and 26 April 2013.

      • 6.07.4

        When under this Rules, the Clearing House becomes the escrow agent of any Escrow Asset in connection with the delivery of the underlying Commodity, the following shall apply:

        (a) The Clearing House holds such Escrow Asset solely as escrow agent on behalf of the depositing party subject to this Rules or the relevant Contract Specifications. As escrow agent, the Clearing House shall act solely as a stakeholder for the convenience of the depositing party and in accordance with the terms for such escrow holding as may be set out in this Rules or the relevant Contract Specifications.
        (b) None of the Clearing House, any of its directors, officers, agents or employees (collectively "Officers") shall be liable to any party for any loss or damage arising out of or in connection with any act or omission with respect to the delivery and/or payment obligations of the depositing party during the period that the Clearing House is the escrow agent for such Escrow Asset or with respect to the non-release or delay in release of the Escrow Asset in accordance with the terms of the escrow unless the loss or damage is caused directly as a result of wilful breach or breach in bad faith by the Officers of the terms of the escrow.

        Added on 22 September 2006 and amended on 22 February 2010 and 26 April 2013.

      • 6.07.5

        The Clearing House shall be entitled to physically commingle Performance Deposits, other payments and other Escrow Assets (where applicable) with all Collateral subject always to its obligations under the SFA to segregate monies received for House Contracts and Customer Contracts.

        Added on 22 September 2006 and amended on 26 January 2007 and 26 April 2013.

      • 6.07.6

        The Clearing House shall be entitled to charge an administrative fee for acting as the escrow agent.

        Added on 22 September 2006.

      • 6.07.7

        The Clearing House shall credit all Performance Deposits, other payments and other Escrow Assets (where applicable) which a Clearing Member has posted with the Clearing House pursuant to this Rules with interest, dividends, and any other returns or entitlements on the full amount at such rate as prescribed by the Clearing House except for:

        6.07.7.1 money continued to be held consequent or subsequent to a delivery default; and
        6.07.7.2 any administrative fees payable to the Clearing House pursuant to Rule 6.07.6.

        The depositing party shall be entitled to the benefit of any such interest, dividends, returns or entitlements that is credited.

        Amended on 26 January 2007 and 26 April 2013.

      • 6.07.8 Release of Performance Deposits and Other Payments

        6.07.8.1 Subject to Rule 6.07.8.2, the Clearing House shall release the Performance Deposit and/or other payment posted with it (less any administrative fees payable) to the respective Selling Member and/or Buying Member, as the case may be only as provided in the relevant Contract Specifications.
        6.07.8.2 The lodging of a claim which is not bona fide by a Seller or Buyer, or Clearing Member as the case may be, may subject such Clearing Member or the Clearing Member of such Seller or Buyer to such penalties as the Clearing House may impose.
        6.07.8.3 For the avoidance of doubt, upon the release of the Performance Deposit and/or other payment, the Clearing House shall be released from its obligations as an escrow agent in relation to such Performance Deposit and/or other payment (as the case may be), and from any liabilities in relation thereto.

        Added on 22 September 2006 and amended on 1 October 2009 and 26 April 2013.

      • 6.07.9 Release of Escrow Assets Other than Performance Deposits and Other Payments

        The Clearing House shall release the Escrow Assets other than the Performance Deposits and other payments (less any administrative fees payable) to the respective clearing members of the Seller and/or Buyer, as the case may be, only as provided in the relevant Contract Specifications. For the avoidance of doubt, upon the release of such Escrow Assets, the Clearing House shall be released from its obligations as an escrow agent in relation to such Escrow Assets, and from any liabilities in relation thereto.

        Added on 26 January 2007 and amended on 1 October 2009 and 26 April 2013.

    • 6.07A Clearing House May Appoint A Facilitator Agent

      Refer to Practice Note 6.07A.

      • 6.07A.1

        The Clearing House may appoint any person as a Facilitator Agent to perform, on its behalf, such function as may be requiredfor the purpose of facilitating delivery of the underlying Commodity of any Contract by Clearing Members.

        Added on 1 October 2009.

      • 6.07A.2

        Clearing Members shall perform such Delivery Obligations through the Facilitator Agent as prescribed by the Clearing House.

        Added on 1 October 2009.

    • 6.08 Time is of the Essence for Periods in the Relevant Contract Specifications

      • 6.08.1

        Time is of the essence with respect to the periods stipulated in this Chapter and the relevant Contract Specifications including those pertaining to the posting of Performance Deposits with the Clearing House, delivery of documents, making and taking of delivery and effecting payment.

        Added on 22 September 2006.

    • 6.09 Alternative Delivery Procedure

      • 6.09.1

        Unless otherwise provided by the relevant Contract Specifications, nothing in this Rules shall prevent the parties otherwise obliged to make and take delivery from effecting delivery via Alternative Delivery Procedure.

        Added on 22 September 2006.

      • 6.09.2

        Upon the delivery of a notice of Alternative Delivery Procedure to the Clearing House (the "ADP Notice"), the Seller and Buyer or such persons designated to make or take delivery as may be prescribed in the ADP Notice shall be solely responsible for completing delivery.

        Added on 22 September 2006.

      • 6.09.3

        Notwithstanding Rule 6.02A.2, the Selling Member and/or Buying Member shall be released from their respective Delivery Obligations, and the Clearing House from its obligations as a central counterparty and/or an escrow agent, and from any liabilities in relation thereto, upon the election of an Alternative Delivery Procedure.

        Added on 22 September 2006 and amended on 26 January 2007 and 1 October 2009.

      • 6.09.4

        In executing such Alternative Delivery Procedure, the Seller and/or Buyer, for whom a Clearing Member acts, or such persons designated to respectively make and/or take delivery in place of such Clearing Member as may be prescribed in the ADP Notice shall indemnify the Clearing House and the Exchange against any liability, costs or expense it may incur for any reason as a result of the execution, delivery or performance of any agreement reached between the Seller and Buyer or such persons designated to respectively make and take delivery as may be prescribed in the ADP Notice, or any breach thereof or default thereunder.

        For the avoidance of doubt, where the clearing members of the Relevant Market making or taking delivery prior to the execution of an Alternative Delivery Procedure are both Clearing Members, the Buyer and Seller or such persons designated to make and take delivery in place of the Clearing Members as may be prescribed in the ADP Notice shall jointly and severally indemnify the Clearing House and/or the Exchange.

        Added on 22 September 2006 and amended on 26 January 2007 and 1 October 2009.

    • 6.10 Post Arbitral Award Procedures

      • 6.10.1

        Where any dispute in connection with a deliverable commodity futures contract is settled by such claim procedure set forth or referred to in the relevant Contract Specifications, the Clearing Member shall follow such post arbitral award procedures as set forth in the relevant Contract Specifications.

        Added on 1 October 2009.

      • 6.10.2

        Without prejudice to Rule 6.10.1, where any dispute in connection with a deliverable commodity futures contract is settled by arbitration before the SIAC, the procedures set out in this Rule 6.10 shall apply.

        Added on 22 September 2006 and amended on 26 November 2007 and 1 October 2009.

      • 6.10.2A

        Upon the conclusion of arbitration and the grant of an arbitral award, SIAC shall serve a notice of the award on the Clearing House and each of the Clearing Members to the arbitration.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.10.3

        If an arbitral award is made in favour of the Buying Member, the Buying Member shall be entitled to:

        6.10.3.1 claim the Performance Deposit posted in relation to the delivery contract by the Selling Member with the Clearing House to the extent that it satisfies the arbitral award; and
        6.10.3.2 the return of the Performance Deposit posted by it in relation to the delivery contract with the Clearing House, without any deduction or set-off.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.10.4

        If the Performance Deposit posted by the Selling Member in relation to the delivery contract is insufficient to satisfy the arbitral award made in favour of the Buying Member, the Buying Member shall be entitled to pursue the balance of such arbitral award against the Selling Member. If such Performance Deposit is greater than the arbitral award made in favour of the Buying Member, the balance of the Performance Deposit shall be returned to the Selling Member.

        Added on 22 September 2006 and amended on 1 October 2009.

      • 6.10.5

        Where the arbitral award is made in favour of the Selling Member, Rules 6.10.4 and 6.10.5 shall apply with the references to "Buying Member" and "Selling Member" being changed to "Selling Member" and "Buying Member" respectively.

        Amended on 1 October 2009.

      • 6.10.6

        For the avoidance of doubt, the above procedures do not apply if the Clearing Members have agreed to effect delivery via an Alternative Delivery Procedure.

        Amended on 1 October 2009.

    • 6.11 Precedence of Rules

      • 6.11.1

        In the event of a conflict between Chapter 6 of this Rules and the relevant Contract Specifications, this Rules shall prevail.

        Added on 22 September 2006.