| 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 6 — Delivery and Related | ||||||
| 6.02A.1 | Clearing Member to cause compliance with relevant delivery obligations | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.02A.2 | Clearing Member to guarantee and assume complete responsibility for performance of all Delivery Obligations | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.02A.10 | Clearing Member to notify the Clearing House of an occurrence of Force Majeure relevant to the performance of Delivery Obligations | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.03.1 | Clearing Member not to default on delivery | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.04.1 | Clearing Member to require evidence from its Seller or Buyer that all open positions which are not offset on the Last Trading Day will be completed by delivery | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6.04.2 | Clearing Member to liquidate open positions on or before LTD if the Seller or Buyer fails to provide evidence that all open positions wil be completed by delivery | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.07.1 | Clearing Member to post with Clearing House as escrow agent a Performance Deposit or other payment which may be prescribed under Contract Specifications as security for benefit of Buyer or Seller who is counterparty to delivery contract | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.07.2 | Clearing Member to collect Performance Deposits or escrow assets within such time as prescribed in the Contract Specifications or by the Clearing House | Not Compoundable | Not Compoundable | $10,000 | ||
| 6.07.3 | Clearing Member not to grant any advance, loan, credit facility to Seller/Buyer for purpose of posting Performance Deposits/Escrow Assets | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6.07A | Clearing Member to perform Delivery Obligations through the Facilitator Agent as prescribed by the Clearing House. | Not Compoundable | Not Compoundable | $10,000 | ||
Added on 16 May 201116 May 2011.