6.3 Post-arbitral Award Procedures for Deliverable Commodity Futures Contracts

Futures Trading Rules

Upon the conclusion of arbitration and the grant of an arbitral award, a notice of the award will be served on the Clearing House and the parties to the arbitration by the SIAC.

6.3.2 Buying Member's Rights to the Performance Deposit

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

(a) claim the Performance Deposit posted by the Selling Member with the Clearing House to the extent that the Performance Deposit satisfies the arbitral award; and

(b) the return of the Performance Deposit posted by the Buying Member with the Clearing House, without any deduction or set-off.

6.3.3 Use of Performance Deposit to Satisfy Award

If the Performance Deposit posted by the Selling Member 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 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.

6.3.4 Selling Member's Rights to the Performance Deposit

Where the arbitral award is made in favour of the Selling Member (as opposed to the Buying Member), Rules 6.3.2 and 6.3.3 shall apply with references to "Buying Member" and "Selling Member" being changed to "Selling Member" and "Buying Member" respectively. "Selling Member" and "Buying Member" as used in this Rule 6.3 refers to the Clearing Members of the Seller and Buyer respectively.

6.3.5 Procedures Not Applicable if Members elect for Alternative Delivery Procedure

For the avoidance of doubt, the above procedures do not apply if the Selling Member and the Buying Member have agreed to effect delivery via an Alternative Delivery Procedure.