Chapter 7A — Suspension and Default

Past version: Effective from 30 Jun 2014 to 11 Nov 2018

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 7A — Suspension and Default
7A.01.2 Clearing Member to comply with conditions and requirements imposed by the Clearing House if its activities are restricted Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
7A.01.4 Clearing Member to notify Clearing House upon the occurrence of any of the events stated in Rule 7A.01.1. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
7A.02.1.5(b) Participating Clearing Member to participate in such auction stated in Rule 7A.02.1.5 Not Compoundable Not Compoundable $10,000
7A.02.2 Clearing Member to cooperate with the Clearing House and nondefaulting Clearing Members in respect of actions which the Clearing House may take under Rule 7A.02.1. Not Compoundable Not Compoundable $10,000
7A.04.2 Suspended or Expelled Clearing Member not to take on or clear new Contracts Not Compoundable Not Compoundable $10,000
7A.05.1.4 Clearing Member to make up deficiencies in Security Deposit resulting from applications by Clearing House on default by Clearing Member Not Compoundable Not Compoundable $10,000
7A.05.1.5 Clearing Member not to take any action to interfere with ability of Clearing House to apply the Security Deposit Not Compoundable Not Compoundable $30,000
7A.06.2.1 Clearing Member to place required Security Deposit with the Clearing House Not Compoundable Not Compoundable $10,000
7A.06.3.2 Clearing Member to deposit Further Assessment Amount with the Clearing House Not Compoundable Not Compoundable $10,000
7A.06.3.3 Clearing Member to immediately furnish Further Assessment Amount not deposited with the Clearing House, prior to the close of business on the Business Day immediately following the call Not Compoundable Not Compoundable $10,000
7A.06.8.1 Clearing Member to make good any deficiency in Security Deposits prior to close of business on Business Day immediately following such application Not Compoundable Not Compoundable $10,000
7A.07.5 Clearing Member to pay Termination Amount (if negative) to Clearing House Not Compoundable Not Compoundable $10,000

Added on 7 August 20127 August 2012 and amended on 30 June 201430 June 2014.