| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by the Exchange, where the Exchange has Determined the Member, Approved Trader and/or Registered Representative to be Liable | Mandatory minimum penalty imposable by the DC | |||||||||
| Rule Chapter/Number | Brief Description of Rule | Members | Approved Traders | Registered Representatives | ||||||||
| 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | ||||
| Chapter 5 — Physical Delivery | ||||||||||||
| 5.1 | Title Documents and Physical Delivery Procedures | |||||||||||
| 5.1.1 | Member to cooperate with Clearing Member to enable Clearing Member to effect delivery of Title Documents against payment | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | N.A. | N.A. | $10,000 | ||
| 5.1.2 | Member to mitigate risk of non-delivery | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | N.A. | N.A. | $10,000 | ||
| 5.1.3 | General Trading Member not to finance Performance Deposits or other Escrow Assets | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | N.A. | N.A. | $10,000 | ||
| 5.1.5 | Member not to default on delivery | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | N.A. | N.A. | $10,000 | ||
Added on 16 May 201116 May 2011.