| 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 6A — Margin Requirements | ||||||
| 6A.2 | Clearing Member to Procure Customer Margins for Marginable Futures Contract | |||||
| 6A.2.1 | Clearing Member to procure Initial Margins and require customers to meet Customer Required Margins for Marginable Futures Contract | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.2.2 | Clearing Member to comply with requirements on the computation and monitoring of customer's margins | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.2.3 | Clearing Member not to allow Excess Margins to be withdrawn unless withdrawal does not cause the deposited collateral to be less than zero. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.3 | Margin Management for Clearing Members in Respect of Margins from Customers for Marginable Futures Contracts | |||||
| 6A.3.1 | Clearing Member not to accept new orders or trades in Marginable Futures Contracts for clearing from any customer unless the specified conditions are met | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.3.2 | Clearing Member to call for additional margins from its customer if the Customer Asset Value falls below the Customer Required Margins | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.3.6 | In respect of Marginable Futures Contracts, Clearing Member not to set margin requirements that are less stringent than those prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.4A | Margin Management for Clearing Members In Respect of Any Margins from Cu | |||||
| 6A.4A.1(3) | Clearing Member to comply with CDP's directions to take such action to offset all or part of the positions to rectify a margin deficiency | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.5 | Clearing Members to Deposit Margins with CDP | |||||
| 6A.5.1 | Clearing Member to deposit Clearing Member Required Margins with CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.5.4 | Clearing Member not to deposit with CDP, monies and assets for its customer for the purpose of meeting Clearing Member Required Margin for Novated Contracts other than Marginable Futures Contracts | Not Compoundable | Not Compoundable | $10,000 | ||
| 6A.6 | Monies and Assets Acceptable by CDP as Margins | |||||
| 6A.6.4 | Clearing Member to notify CDP as to whether Collateral is to be maintained solely as margin for Customer Accounts or otherwise. | Not Compoundable | Not Compoundable | $10,000 | ||
| 6A.9A | Additional Margins | |||||
| 6A.9A.2 | Clearing Member to deposit additional margins with CDP by such time as CDP shall specify and in such form as CDP prescribes | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.10 | Segregation of Customer's Money and Assets | |||||
| 6A.10.1(1) | Clearing Member to comply with the customer segregation requirements under the Rules and the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
| 6A.10.1(2) | Clearing Member to ensure that CDP is at all times provided with such information as it requires to discharge its segregation obligations under the SFA and/or enable CDP to issue the Authority with the verification of margin funds statement placed with CDP as required under the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
| 6A.11 | Notification of Under Segregation | |||||
| 6A.11.1 | Every Clearing Member shall immediately report to CDP of any under-segregation of moneys or assets as required under the Rules of the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
| 6A.12 | [deleted] | |||||
| [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
| [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | |
| 6A.14 | Under-Margined Accounts | |||||
| 6A.14.1 | Clearing Member to immediately notify CDP when any account does not comply with the Customer Required Margins by an amount which exceeds its aggregate resources | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 6A.15 | [deleted] | |||||
| [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
Added on 16 May 201116 May 2011 and amended on 21 January 201321 January 2013 and 29 July 201329 July 2013.