Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by CDP, where CDP 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 | ||
Rule 10 — Liabilities | ||||||
10.2 | Force Majeure | |||||
10.2.3 | Clearing Member to notify CDP and any other relevant party upon the occurrence of any event of Force Majeure | Not Compoundable | Not Compoundable | $10,000 | ||
10.6 | Indemnity | |||||
10.6.2 | Clearing Member to reimburse the relevant Indemnified Person for the specified payments | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Clearing Member to render cooperation to the relevant Indemnified Person in respect of any legal, arbitration or other regulatory proceedings. | Not Compoundable | Not Compoundable | $10,000 |
Added on 16 May 201116 May 2011 and amended on 15 September 201715 September 2017.