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 200622 September 2006 and amended on 1 October 20091 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 200622 September 2006 and amended on 1 October 20091 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 200622 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 200622 September 2006 and amended on 1 October 20091 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 200622 September 2006 and amended on 7 August 20127 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 200622 September 2006 and amended on 26 January 200726 January 2007.
6.02A.7 Matching and Re-Novation
Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007, 1 October 20091 October 2009, 22 February 201022 February 2010 and 22 April 201022 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 200726 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:
Added on 22 February 201022 February 2010 and amended on 26 April 201326 April 2013.
6.02A.8 Method of Matching
Added on 22 September 200622 September 2006 and amended on 1 October 20091 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 200622 September 2006 and amended on 1 October 20091 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 20091 October 2009.
6.02A.10 Force Majeure
Added on 22 September 200622 September 2006 and amended on 1 October 20091 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 200622 September 2006 and amended on 26 January 200726 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 200622 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:
Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007 and 1 October 20091 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:
Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007.
6.02A.15 Disclaimers
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.
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 200622 September 2006 and amended on 26 January 200726 January 2007 and 1 October 20091 October 2009.