Whole Section

  • 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 200622 September 2006 and amended on 7 December 20157 December 2015.