Chapter 1081
Cleared OTC London Gold Forwards (cash margin)
1081.00.

SCOPE OF CHAPTER
This chapter is limited in application to the clearing of Gold Forwards, where the parties to thetransaction are “eligible contract participants” as defined in Section 1a(18) of the Commodity
Exchange Act. Gold Forwards are listed by COMEX for clearing-only. Although thespecifications for cleared Gold Forwards are set forth in this chapter, and the position rules
applicable to Gold Forwards are set forth in Chapter 5, Gold Forwards are not traded on, norare they traded subject to the rules of, COMEX in its capacity as a designated contract market.
Clearing members that clear Gold Forwards are subject to rules generally applicable toclearing members in Chapter 4 (Enforcement of Rules), Chapter 6 (Arbitration), Chapter 7b(Delivery Facilities and Procedures), Chapter 8 (Clearing House and Performance Bonds), andChapter 9 (Clearing Members), as applicable. The clearing and settlement of transactions inGold Forwards shall also be subject to the provisions of Chapter 8-F of the CME Rulebook(Over-the-Counter Derivative Clearing).

1081.01.

CONTRACT SPECIFICATIONS
1081.01.A. Unit of Clearing
The unit of clearing shall be $0.001fine troy ounces of gold.
1081.01.B. Hours for Clearing Entry
The Exchange shall determine the hours during which Gold Forwards may be submitted to theClearing House. Positions shall be initiated or closed out using off exchange transactions.
1081.01.C. Minimum Price Increments
Minimum price fluctuations shall be in multiples of one tenth of one cent ($0.001) per fine troy
ounce which shall equal $0.00001 per contract. Contracts shall not be made on any other pricebasis.
1081.01.D. Valid Delivery Dates for Cleared Gold Forwards
Delivery in respect of Gold Forwards shall be permitted for any valid value date mutuallyagreed to by buyer and seller, subject to a maximum valid delivery date determined by theExchange.
In general, a valid value date shall be any business day that is a banking business day in
London and New York. Where the agreed delivery date of a Gold Forward is subsequently
determined to fall on a day that is not a valid value date, the delivery date shall be the following
valid value date, unless such date falls in the calendar month following the calendar month ofthe originally agreed delivery date, in which case the delivery date shall be the preceding validvalue date.
1081.01.E. Delivery Price and Delivery Value
On the Delivery Date, the Delivery Price shall be the price agreed by buyer and seller as partof the original transaction, subject to Rule 1081.01.C. The Delivery Value shall the Delivery
Price multiplied by the number of fine troy ounces of gold to be delivered.
Notwithstanding the forgoing, the Clearing House may determine an alternative Delivery Priceand Delivery Value in order to facilitate the netting of multiple contracts. In such cases, therevised Delivery Price and Delivery Value shall be an arithmetic average of the Delivery Priceand Delivery Value of the constituent contracts, weighted by the number of fine troy ounces tobe delivered in respect of each contract.
1081.01.F. Position Accountability
Position accountability, as defined in Chapter 5 of the Rules, will apply to cleared positions
held in Gold Forwards.
1081.01.G. Last Day of Clearing
The last day on which a Gold Forward transaction may be submitted for clearing in respect of aspecified delivery date shall be one valid business day prior to the delivery date.
1081.01.H. Liquidation(1) At Maturity. After clearing of Gold Forwards in respect of a specified delivery date hasceased, in accordance with Rule 1081.01.G. of this chapter, outstanding contracts for suchdelivery date shall be liquidated by delivery through book-entry transfer as prescribed in Rules
1081.01.I and 1081.02.

(2) Prior to Maturity. Rule 806 shall not apply to positions in Gold Forwards. Prior to theDelivery Date, positions may be closed out upon the request of the clearing firm to the Clearing
House, and in the manner prescribed by the Clearing House.
1081.01.I. Deliverable Standard
In respect of Gold Forwards, delivery shall be made through book-entry transfer of gold in‘unallocated’ form via an account denominated in gold operated by a member of London
Precious Metals Clearing Limited. Such gold shall represent metal which meets or exceeds thestandards of the London Bullion Market Association within its Good Delivery Rules and Good
Delivery Specifications for ‘Loco London’ delivery.
1081.01.J. Contract Modifications
Specifications shall be fixed as of the first day of clearing of a contract, except that alldeliveries must conform to government regulations in force at the time of delivery. If any
national or international government agency or body issues an order, ruling, directive or law
that conflicts with the requirements of these rules, such order, ruling, directive or law shall be
construed to take precedence and become part of these rules and all open and new contracts
shall be subject to such government orders.

1081.02.

DELIVERY1081.02.A. Last Day of Clearing
By the time prescribed by the Clearing House on the Last Day of Clearing, as defined in Rule1081.01.G, Clearing Members having either open long or open short positions shall notify theClearing House of the following information:(1) Clearing Members having open long positions (buyers) shall provide the following
information in respect of each open position in a manner prescribed by the Clearing House:(a) the name and address of the long Clearing Member's bank used for the acceptance of gold,and account number; and (b) the name and address of the long Clearing Member's bank usedfor the payment of US dollars, and account number.
(2) Clearing Members having open short positions (sellers) shall provide the following
information in respect of each open position in a manner prescribed by the Clearing House:(a) the name and address of the short Clearing Member's bank used for the delivery of gold,
and account number; and (b) the name and address of the short Clearing Member's bank used
for the receipt of US dollars, and account number.
1081.02.B. Day of Delivery
On the Delivery date,(1) Clearing Members having open short positions (sellers) shall deliver gold to the account of
the Clearing House as specified in Rule 1081.01.I, by the time prescribed by the ClearingHouse.
(2) Clearing Members having open long positions (buyers) shall pay the Delivery Value, asdefined in Rule 1081.01.E, by such method as prescribed by the Clearing House to theaccount of the Clearing House, by the time prescribed by the Clearing House.
(3) Subject to the notification of the Clearing House of all of the information specified in Rule1081.02.A. and successful fulfillment of the transfers described in Rule 1081.02.B(1) and1081.02.B(2), the Clearing House shall (i) deliver gold to the account of the Clearing Member
with the open long position as provided in accordance with Rule 1081.02.A(1)(a), and (ii)transfer the Delivery Value to the account of the Clearing Member with the open short position
as provided in accordance with Rule 1081.02.A(2)(b), by the time prescribed by the Clearing
House, provided, however, that if the Clearing House is unable to do so by such time as aresult of circumstances beyond its control, it will do so as soon as practicable after thecondition of impossibility has ceased to exist.
1081.02.C. Amendments to Timings
The Exchange may amend the timings of notifications deliveries, and transfers under this Rule1081.02 to reflect the adoption of daylight savings time in New York and/or London.

1081.03.

DISPUTES
All disputes between interested parties may be settled by arbitration as provided in theExchange rules.