CHAPTER 7
DELIVERY FACILITIES AND PROCEDURES

GENERAL
700.

SCOPE OF CHAPTER701.

DECLARATIONS OF FORCE MAJEURE

702.

CLEARING MEMBER DUTIES TO THE CLEARING HOUSE

DELIVERY FACILITIES AND PROCEDURES FOR AGRICULTURAL COMMODITIES703.

APPROVED LIVESTOCK YARDS AND SLAUGHTER PLANTS FOR LIVE CATTLE
703.A. Conditions for Approval
703.B. Delivery Location

704.

REVOCATION, EXPIRATION OR WITHDRAWAL OF REGULARITY

705.

[RESERVED]

706.

APPLICATION FOR GRADING

707.-709.

[RESERVED]

710.

LIABILITY FOR NEGLIGENCE OF GRADERS

711.

FINALITY OF USDA OR OTHER REQUIRED GRADING CERTIFICATE

712.

[RESERVED]

713.

DELIVERY PROCEDURES
713.A. Notice of Intent to Deliver
713.B. Delivery Notice
713.C. Possession of Product and Relevant Documents
713.D. Notice to Buyers
713.E. Payment

714.

FAILURE TO DELIVER

715.

FAILURE TO ACCEPT DELIVERY OR REMIT FULL PAYMENT716.

DUTIES OF CLEARING MEMBERS

717.

[RESERVED]

718.

CUSTOMER SUBSTITUTION IN THE EVENT OF CLEARING MEMBERBANKRUPTCY719.

INITIAL REGULARITY FOR DELIVERY AGAINST A NEW FUTURES CONTRACT

720-729.

[RESERVED]

CLS CURRENCY DELIVERIES730.

DELIVERY THROUGH CLS BANK

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731.

FOREIGN CURRENCY BUYER’S DUTIES FOR CLS DELIVERIES

732.

FOREIGN CURRENCY SELLER’S DUTIES FOR CLS DELIVERIES733.

DELIVERY DATE

734.-735.

[RESERVED]
NON-CLS (LEGACY) CURRENCY DELIVERIES736.

REGISTERED BANKS AND OTHER FACILITIES737.

FOREIGN CURRENCY BUYER’S DUTIES
737.A. Currency Contracts
737.B. Physical Delivery Currency Cross-Rate and Israeli Shekel Contracts
737.C. Physical Delivery Euro versus Polish Zloty, Hungarian Forint and Czech
Koruna Cross-Rate Contracts
737.D. [RESERVED]
737.E. [RESERVED]
737.F. Restrictions

738.

FOREIGN CURRENCY SELLER’S DUTIES
738.A. U.S. Dollar-Based Currency Contracts, Euro versus Polish Zloty, Hungarian
Forint, Czech Koruna Cross-Rate Contracts
738.B. Physical Delivery Currency Cross-Rate and Israeli Shekel Contracts
738.C. [RESERVED]
738.D. [RESERVED]
738.E. Restrictions

739.

DELIVERY DATE

740.

PAYMENTS

741.

COSTS OF DELIVERY742.

DELIVERY NETTING
742.A. CLS Delivered Currency Futures Contracts
742.B. Non-CLS Delivered Currency Futures Contracts

743.

DELIVERY INFRACTIONS
743.A. Late or Inaccurate Delivery
743.B. Delivery Obligation Failure
743.C. Final Settlement in Delivery Obligation Failure744.-759.

[RESERVED]OTHER COMMODITIES760.

DELIVERY PROCEDURES IN OTHER COMMODITIES

761.-769.

[RESERVED]© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

Page 2 of 15

ALTERNATIVE DELIVERY PROCEDURES
770.

DELIVERY OBLIGATION TRANSFER PROCEDURES

771.

ALTERNATIVE NOTICE OF INTENTION TO DELIVER

772.-779.

[RESERVED]SECURITY FUTURES PRODUCTS
780.

SECURITY FUTURES PRODUCTS

781.

DELIVERY OF UNDERLYING SECURITIES782.

DESIGNATION OF DELIVERY FACILITIES783.

[RESERVED]

784.

FAILURE TO PERFORM

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 7
FACILITIES RELATED TO CME PRODUCTS TABLE© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

Page 3 of 15

Chapter 7
Delivery Facilities and Procedures
GENERAL
700.

SCOPE OF CHAPTER
Deliveries and delivery facilities shall be governed by this chapter and, where applicable, the chapter
which includes the contract specifications for the commodities being delivered and such otherrequirements as the Exchange may prescribe.
For purposes of these Rules, unless otherwise specified, times referred to herein shall refer to andindicate Chicago time.

701.

DECLARATIONS OF FORCE MAJEURE
If a determination is made by the Chief Executive Officer, Chairman, Chief Operating Officer, or Chief
Regulatory Officer, or their delegate, that delivery or final settlement of any contract cannot becompleted as a result of Force Majeure, he shall take such action as he deems necessary under thecircumstances, and his decision shall be binding upon all parties to the contract. The Exchange shallnotify the CFTC of the implementation, modification or termination of any action taken pursuant to thisRule as soon as possible after taking the action.
It shall be the duty of clearing members, members and regular facilities to notify the Exchange of any
circumstances that may give rise to a declaration of Force Majeure.
Nothing in this Rule shall in any way limit the authority of the Board of Directors to act in a Force
Majeure situation pursuant to Rule 230.k.

702.

CLEARING MEMBER DUTIES TO THE CLEARING HOUSE
Every clearing member carrying open long or short positions shall present to the Clearing House eachbusiness day an accurate inventory of such open positions. The inventory of open long and shortpositions shall be reported to the Clearing House in such manner and at such times as the Clearing
House may prescribe.
A clearing member, carrying an account that is required to make or accept delivery, agrees toguarantee and assume complete responsibility for the performance of all delivery requirements set forthin the Rules, including the requirement that delivery margin must be deposited with the Clearing House
in such amounts and in such form as required by the Exchange.
In the event a clearing member fails to perform its delivery obligations to the Clearing House, such
failure may be deemed a default pursuant to Rule 802. In a delivery failure, the Clearing House shallensure the financial performance to the clearing member whose actions or omissions did not cause orcontribute to the delivery failure (the “Affected Clearing Member”). In this regard, the Clearing House
powers will include, but will not be limited to, the right to sell or liquidate the commodity subject todelivery and to distribute the proceeds as appropriate. “Financial performance” means payment of thecommercially reasonable costs of the Affected Clearing Member related to replacement of the failed
delivery and includes any related fines, penalties and fees incurred by the Affected Clearing Member
and does not include physical performance or legal fees.
An Affected Clearing Member seeking financial performance from the Clearing House shall provide
prompt notice to the Clearing House of the delivery failure and a good faith estimate of any financial
performance being sought no later than 1 hour after the delivery deadline for the respective product,
which may be extended upon request by the Affected Clearing Member by the Global Head of Clearing& Post-Trade Services or their designee due to extenuating circumstances. As soon as reasonably
practicable thereafter, the Affected Clearing Member seeking financial performance shall provide to theClearing House a detailed statement, with supporting documentation, of all amounts sought.

DELIVERY FACILITIES AND PROCEDURES FORAGRICULTURAL COMMODITIES703.

APPROVED LIVESTOCK YARDS AND SLAUGHTER PLANTS FOR LIVE CATTLE© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

Page 4 of 15

703.A.
Conditions for Approval
Deliveries on Exchange contracts of live beef cattle can be made only at slaughter plants or public
livestock yards designated and approved for delivery by the Exchange.
Livestock yards and slaughter plants (hereafter “facilities”) may be declared regular for delivery with theapproval of the Exchange. Persons operating facilities who desire to have such facilities made regularfor delivery under the Rules of the Exchange shall make application for initial Declaration of Regularity
on a form prescribed by the Exchange prior to January 1 for a one-year term beginning February 1, andat any time during a current term for the balance of that term.
Applications for renewal of regularity shall be made prior to January 1 for the respective year beginning
February 1, and shall be on the same form as prescribed by the Exchange.
The Exchange, in its sole discretion, may determine and publish maximum daily live delivery limits(maximum grading capacity) for futures contracts at approved livestock yards (see Interpretations &Special Notices Relating to Chapter 7 for the current limits). These limits are subject to change basedon changes such as livestock yard infrastructure (e.g., scales, holding pens, etc.) and availability of
USDA grading personnel.
Regular facilities that desire to increase their regular daily limits during a current term shall makeapplication for the desired amount of total regular daily limit on the same form as prescribed by the
Exchange.
Initial regularity and increases in regularity for delivery against a listed futures contract shall be effective
either thirty days after the Exchange posts a notice that a bona fide application has been received or the
day after the application is approved by the Exchange, whichever is later.
Regular facilities that wish to have their regular daily limit decreased shall file with the Exchange awritten request for such decrease and such decrease shall become effective once a notice has beenposted by the Exchange.
The Exchange may establish such requirements and conditions for approval of regularity as it deems
necessary. The application for regularity prescribed by the Exchange shall set forth conditions ofregularity as well as other agreements with which the operator of the regular facility shall comply. In
addition to any conditions and agreements contained in such application or in the relevant productchapter, the following shall constitute conditions for regularity and requirements with which the operator
of a regular facility shall comply:(1) The facility making application shall be subject to inspection by the Exchange, the United States
Department of Agriculture, or other government agency, as applicable.
(2) A public livestock yard shall be a stockyard within the definition of the Packers and Stockyards
Act, 1921 as amended, and shall have received notice to that effect from the Secretary ofAgriculture.
(3) The slaughter plant shall slaughter primarily fed cattle in the normal course of business, have a
fed cattle slaughter capacity of at least 500 head per day, and have proper facilities for weighing
and grading.
(4) The facility must be registered and bonded with the Grain Inspection, Packers & Stockyards
Administration (“GIPSA”) of the U.S. Department of Agriculture.
(5) The facility shall be provided with modern improvements and appliances for the convenient andexpeditious receiving, handling and shipping of product.
(6) The operator of the facility shall promptly notify the Registrar of any damage to the facility thatprevents the facility from performing its delivery obligations under Exchange Rules.
(7) The operator of the facility shall permit the Exchange, at any time, to examine the books andrecords of the facility in connection with deliveries against the contract.
(8) The operator of the facility shall be required to keep such records, make such reports and be
subject to inspection and regulation by the Secretary of Agriculture, as provided in said Packers
and Stockyards Act.
(9) The operator of the facility shall make such reports, keep such records and permit such facility
visitation as the Exchange, the Commodity Futures Trading Commission or any other applicablegovernment agency may require.

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(10) The facility must have scale(s) installed, maintained and operated in accordance with GIPSA
requirements.
(11) The operator of the facility shall not engage in unethical or inequitable practices, and shallcomply with all applicable governmental laws, federal or state statutes, rules or regulations.
(12) The facility shall immediately notify the Exchange of any changes in ownership or managementof the facility.
(13) The facility has secure holding pens with access to feed and water.
(14) The facility must have the ability to segregate into secure holding areas cattle without access tofeed or water.
(15) The operator of the facility must provide the Exchange, on an annual basis, with its black-out
dates, routine shutdown dates and must immediately notify the Exchange with any changes tothose dates or any other unscheduled blackout or shutdown dates or events that will prevent thefacility from performing its delivery obligations under Exchange Rules.
(16) Persons operating regular facilities shall be subject to the Rules of the Exchange, thedisciplinary procedures set forth in Chapter 4, and the arbitration procedures set forth in
Chapter 6, and shall abide by and comply with the terms of any disciplinary decision imposed or
any arbitration award issued against it pursuant to the Rules of the Exchange.
(17) Persons operating regular facilities shall consent to the disciplinary jurisdiction of the Exchange
for five years after such regularity lapses, for conduct which occurred while the facility wasregular.
The Exchange, in its sole discretion, may determine not to approve facilities for regularity, or forincreases in regular daily limits of existing regular facilities, regardless of whether such facilities meetthe preceding requirements and conditions. Some factors that the Exchange may, but is not required to,consider in exercising its discretion include, among others, whether deliveries at such facilities, if
tendered in satisfaction of futures contracts, might be expected to adversely affect the price discovery
function of futures contracts or impair the efficacy of futures trading in the relevant market, or whether
the currently approved regular daily limits provide for an adequate deliverable supply.
703.B.
Delivery Location
Livestock yards must be located in any of the following territories:(1) Colorado;(2) Iowa, Minnesota, South Dakota;(3) Kansas;(4) Nebraska;(5) Texas, Oklahoma, New Mexico.
Slaughter plants must be located within a 225-road mile radius of one or more approved livestock yards.

704.

REVOCATION, EXPIRATION OR WITHDRAWAL OF REGULARITY
The Business Conduct Committee may revoke a declaration of regularity whenever a regular facility
fails to comply with the conditions specified in this Chapter, any other conditions to which it has agreed
in its application for regularity, or any other Rules of the Exchange.
Unless a shorter notification period is otherwise authorized by the Exchange, a facility shall give six (6)months prior written notice to the Exchange prior to withdrawing from regularity.
If the designation of a facility as regular is withdrawn or revoked, a notice shall be posted announcing
such withdrawal or revocation and the period of time, if any, during which deliveries can be madethrough such facility in satisfaction of futures contracts under the Rules of the Exchange.

705.

[RESERVED]

706.

APPLICATION FOR GRADING
Application for live beef cattle gradings to be used for delivery on Exchange transactions must be filed
by clearing members with the Clearing House. Requests for gradings will be forwarded to theappropriate government office in the order in which applications are received.

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707.-709.

[RESERVED]

710.

LIABILITY FOR NEGLIGENCE OF GRADERS
The Exchange shall not be liable for any error or negligence of any grader. In all delivery matters, thedetermination of the USDA grader, for live-graded deliveries, or the USDA Meat Grader, for carcassgraded deliveries, shall be final and binding on all parties.

711.

FINALITY OF USDA OR OTHER REQUIRED GRADING CERTIFICATEThe Exchange assumes no responsibility and disclaims all liability on account of the grade, quantity or
specifications of any commodity delivered on the basis of a USDA or other required grading certificate.

712.

[RESERVED]

713.

DELIVERY PROCEDURES
713.A.
Notice of Intent to Deliver
Where delivery requires a Notice of Intent to Deliver, the buyer and seller shall comply with therequirements of the relevant Rules and such requirements as are prescribed by the Exchange and theClearing House.
713.B.
Delivery NoticeUpon determining the buyers obligated to accept deliveries tendered by issuers of delivery notices, theClearing House shall promptly furnish to each issuer the names of the buyers obligated to accept
delivery for each commodity for which a notice was tendered and shall also inform the issuer of thenumber of contracts for which each buyer is obligated.
713.C.
Possession of Product and Relevant Documents
The seller shall by such time as is prescribed in the relevant contract specification chapter on the day oftender have possession of the product and all relevant documents.
713.D.
Notice to Buyers
The Clearing House promptly shall pass the Delivery Notices in the order in which they are received tothe clearing members obligated by the oldest open long contracts to take delivery of the same amountsof the same commodities for the same delivery month. When a member of the Clearing House who has
open purchases is suspended from the Clearing House for default or insolvency, he shall be deemedout of line for delivery and tender shall be made to the clearing member obligated upon the next oldest
long contract. Also, if tender is made to a clearing member who is thereafter suspended for default or
insolvency before delivery is accepted, then, subject to the provisions of Rule 718, the Delivery Notice
shall be withdrawn and another immediately served upon the clearing member obligated upon the next
oldest long contract.
713.E.
Payment
Unless otherwise specifically provided in the relevant contract specification chapter, a buyer receiving a
Delivery Notice from the Clearing House shall make payment in same day funds, for the net invoicing
price. The buyer shall then be entitled to all required documents in proper form and with suchendorsements as may be necessary to convey title and possession and as are necessary to expedite
shipment. The buyer shall also be entitled to all other documents as are otherwise required by theprovisions of the relevant contract specification chapter.

714.

FAILURE TO DELIVERIn the event a clearing member fails to fulfill its specific delivery obligations pursuant to Exchange rules,
the sole obligation of the Clearing House is to pay reasonable damages proximately caused by suchdelivery obligation failure, in an amount which shall not exceed the difference between the delivery priceof the specific commodity and the reasonable market price of such commodity at the time delivery is
required according to the rules of the Exchange. The Clearing House shall not be obligated to: (1) makeor accept delivery of the actual commodity; or (2) pay any damages relating to the accuracy,
genuineness, completeness, or acceptableness of certificates, instruments, warehouse receipts,
shipping certificates, or other similar documents; or (3) pay any damages relating to the failure or
insolvency of banks, depositories, warehouses, shipping stations, or similar organizations or entities
that may be involved with a delivery.

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Notwithstanding any provision of the rules, the Clearing House has no obligation or liability to any
clearing member or any other person relating to a failure to fulfill a delivery obligation unless it is notified
by the clearing member that did perform, or was in a position to perform its delivery obligations, that a
failure occurred, as soon as possible, but in no event later than 1 hour after the delivery deadline for therespective product, which may be extended by the Global Head of Clearing & Post-Trade Services ortheir designee pursuant to the provisions of Rule 702.
If a clearing member does not fulfill its delivery obligations to another clearing member, it shall be
responsible to the Clearing House for any damages incurred by the Clearing House as a result of suchdelivery obligation failure.
A failure by a clearing member carrying a short futures position to tender a Delivery Notice on or before
the time specified by the Clearing House on the last day on which such notice is permitted shall bedeemed a violation of this rule, except that the Global Head of Clearing & Post-Trade Services may, forgood cause, extend the time to present such notice.
Unexcused failure to make delivery shall be deemed an act detrimental to the interest or welfare of the
Exchange. In addition to any penalties imposed as provided in Chapter 4, the Clearing House Risk
Committee shall determine and assess the damages incurred by the buyer.

715.

FAILURE TO ACCEPT DELIVERY OR REMIT FULL PAYMENTWhere a buyer to whom a delivery has been assigned by the Clearing House fails to take such delivery
and make payment when payment is due, the seller tendering such delivery shall immediately notify the
Clearing House. If a clearing member obligated to receive delivery fails to make full payment to theseller, the Clearing House shall debit the account of said clearing member an amount sufficient tocomplete the delivery.
Failure to accept delivery or to remit full payment shall be deemed an act detrimental to the interest or
welfare of the Exchange.

716.

DUTIES OF CLEARING MEMBERS
Prior to the last day of trading in a physically delivered contract, each clearing member shall be
responsible for assessing the account owner’s ability to make or take delivery for each account on its
books with open positions in the expiring contract. Absent satisfactory information from the accountowner, the clearing member is responsible for ensuring that the open positions are liquidated in anorderly manner prior to the expiration of trading.

717.

[RESERVED]

718.

CUSTOMER SUBSTITUTION IN THE EVENT OF CLEARING MEMBER BANKRUPTCY
In the event that an "order for relief" as defined at CFTC Reg. 190.01(ee) has been entered in respect
to a clearing member whose customer holds a futures contract or options contract that may only beliquidated by physical delivery and, as to such contract:(i) trading has ceased on the date of the entry of the "order for relief;"(ii) notice of delivery has been tendered on or before the date of the entry of the "order for relief;" or(iii) trading ceases before the trustee can liquidate the contract;
then, notwithstanding Rule 713.D., the Clearing House shall allow the customer (if his identify can bereadily ascertained and verified) to be directly substituted for the debtor clearing member to the extent
necessary to complete delivery. None of the requirements for delivery, including notices, instructions,payment, etc., shall be waived hereby. Moreover, substitution shall in no way relieve the debtor
clearing member of its obligations to the Clearing House and the opposite clearing member in regard to
any claims arising out of that delivery.

719.

INITIAL REGULARITY FOR DELIVERY AGAINST A NEW FUTURES CONTRACT
Initial regularity for delivery against a new futures contract concurrent with the listing of such new
futures contract shall be effective either fifteen days after the Exchange posts a notice that a bona fideapplication has been received or the day after the application is approved by the Exchange, whicheveris later.

720. - 729. [RESERVED]© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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CLS CURRENCY DELIVERIES730.

DELIVERY THROUGH CLS BANK
Consistent with procedures prescribed by the CME Clearing House, CME deliverable currency
contracts are required to be physically delivered through the CLS (Continuous Linked Settlement) Bank
System where both the trading unit currency and the price increment (minimum fluctuation) currency aresupported by CLS delivery procedures. Notwithstanding the foregoing, a clearing firm shall not be
required to make physical delivery through the CLS Bank System (i) for any currency contract where thedelivery exposure of the clearing firm is reasonably expected not to exceed $25 million for any one
currency contract or (ii) for any currency contract delivery obligations below $50 million, measured
across all the clearing member’s CLS-eligible currency contracts in the aggregate, where more than one
currency is required to be delivered. Clearing firms delivering CME currency contracts must use anapproved CLS agent bank for deliveries through CLS Bank, which may be any approved CLS agent
bank. If practicable, in those situations where clearing firms delivering CME currency contracts use thesame CLS Agent Bank for delivery, then physical delivery may occur by book entry at the same CLS
Agent Bank and not be settled through the CLS Bank.
When buyers and sellers elect to do currency deliveries through the CLS System, they agree to abideby the deadlines and compensation conventions established by the CLS agent bank it uses and the
CLS Bank. The CME Clearing House’s obligation to the delivery transaction ends when payment ismade through the CLS System. The CME Clearing House’s sole obligation with respect to the delivery
transaction shall be its obligation to ensure financial performance pursuant to Rule 702.

731.

FOREIGN CURRENCY BUYER'S DUTIES FOR CLS DELIVERIES
A clearing member that intends to accept delivery of a foreign currency through the CLS System toliquidate a net long position in that foreign currency shall, no later than 11:00 a.m. Chicago time on thelast day of trading, present to the Clearing House a Buyer's CLS Delivery Commitment, which identifies
the CLS agent bank used by the buyer and the number of contracts and the component delivery values.
Also, the clearing member/customer shall arrange with its CLS agent bank to input the relevant
instructions into the CLS System no later than 1:00 p.m. Chicago time on the business day proceeding
the delivery day.
A match of delivery information must occur in order for a delivery transaction to be finalized. In theevent that clearing member/customer instructions are not entered into the CLS System by 1:00 p.m.
Chicago time on the business day preceding the delivery day, then the unmatched transaction may not
be completed and paid on the delivery date through the CLS System. In such event, delivery
instructions may be resubmitted to the CLS agent bank for delivery on the subsequent business day.
Also in such event, the Clearing House may assess fines for the delayed delivery. Further, if thedelivery instructions remain unmatched by 1:00 p.m. Chicago time on the business day preceding thedelivery day, the Clearing House may require the buyer of the foreign currency to post an Order to Pay
to the appropriate Agent Bank by no later than the close of business that day, in addition to complying
with other procedures as outlined in the Clearing House Manual.
If the Buyer's CLS Delivery Commitment is received later than 11:00 a.m. Chicago time on the last dayof trading, but not later than 8:00 a.m. Chicago time on the following day, the buyer's clearing member
shall be assessed a fine on a per contract basis, the amount to be determined by Exchange staff. Any
deliveries memoranda or instructions received subsequent to 8:00 a.m. Chicago time on the day
following the last day of trading shall be deemed a delivery obligation failure and acted upon inaccordance with Rule 743.B. The buyer shall have made all provisions necessary to receive delivery
within the country of issuance.

732.

FOREIGN CURRENCY SELLER'S DUTIES FOR CLS DELIVERIES
A clearing member representing a customer delivering foreign currency through the CLS System toliquidate a net short position in that foreign currency shall, no later than 11:00 a.m. Chicago time on thelast day of trading, present to the Clearing House a Seller's CLS Delivery Commitment, which identifies
the CLS agent bank used by the seller and the number of contracts and the component delivery values.
Also, the clearing member/customer shall arrange with its CLS agent bank to input the relevant
instructions into the CLS System no later than 1:00 p.m. Chicago time on the business day proceeding
the delivery day.
A match of delivery information must occur in order for a delivery transaction to be finalized. In theevent that clearing member/customer instructions are not entered into the CLS System by 1:00 p.m.

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Chicago time on the business day preceding the delivery day, then the unmatched transaction may not
be completed and paid on the delivery date through the CLS System. In such event, delivery
instructions may be resubmitted to the CLS agent bank for delivery on the subsequent business day.
Also, in such event, the Clearing House may assess fines for the delayed delivery. Further, if thedelivery instructions remain unmatched by 1:00 p.m. Chicago time on the business day preceding thedelivery day, the Clearing House may require the seller of the foreign currency to comply with otherprocedures as outlined in the Clearing House Manual.
If the Seller's CLS Delivery Commitment is received later than 11:00 a.m. Chicago time on the last dayof trading, but not later than 8:00 a.m. Chicago time on the following day, the seller's clearing member
shall be assessed a fine on a per contract basis, the amount to be determined by Exchange staff. Any
deliveries memoranda or instructions received subsequent to 8:00 a.m. Chicago time on the day
following the last day of trading shall be deemed a delivery obligation failure and acted upon inaccordance with Rule 743.B.

733.

DELIVERY DATE
Delivery shall be completed in accordance with the specifications of the separate contracts.

734.-735.

[RESERVED]

736.

REGISTERED BANKS AND OTHER FACILITIESExchange staff shall establish such requirements and preconditions for registration as a facility for thedelivery of currencies as it deems necessary.

NON-CLS (LEGACY) CURRENCY DELIVERIES737.

FOREIGN CURRENCY BUYER’S DUTIES
737.A.
Currency Contracts
A clearing member representing a customer that intends to accept delivery of a foreign currency inliquidation of his net long position in that foreign currency shall, no later than 11:00 a.m. on the last dayof trading, except for Turkish Lira/ U.S. Dollar present to the Clearing House a Buyer's Non-CLS
Delivery Commitment. Turkish Lira/ U.S. Dollar commitments shall be submitted to the Clearing House
within one hour following termination of trading on the last day of trading. In addition, the clearing
member shall either deposit, or present a bank Order to Pay, an amount equal to the net U.S. dollar
value of such customer's positions. Values for positions in contracts with minimum fluctuations
denominated in U.S. dollars shall be the contract value based on the settlement price on the last day of
trading. Values for positions in contracts with minimum fluctuations in foreign currency shall be thecontract size. If the buyer elects to pay by deposit, the deposit shall be made by 1:00 p.m. on the firstday preceding the delivery day that is a business day common to the Exchange, Chicago banks and
New York City banks for all other currencies. Such deposit shall be in the form of a wire transfer ofsame-day funds to an account at a bank designated by the Clearing House. If the buyer elects to pay
by bank Order to Pay, an Order to Pay from an Exchange-approved bank shall be presented to a bankdesignated by the Clearing House by 1:00 p.m. on the first day preceding the delivery day that is abusiness day common to the Exchange, Chicago banks and New York City banks for all othercurrencies. The Bank Order to Pay shall be in a form approved by the Clearing House and shallpromise to pay same-day funds on the delivery day.
737.B.
Physical Delivery Currency Cross-Rate and Israeli Shekel Contracts
A clearing member representing a customer that intends to accept delivery of a Physical Delivery
Currency Cross-Rate or Israeli Shekel Contract in liquidation of his position shall, no later than 11:00
a.m. on the last day of trading, present to the Clearing House a Buyer's Non-CLS Delivery Commitment.
In addition by 1:00 p.m. on the first day preceding the delivery day that is a business day common to the
Exchange, Chicago banks and New York City banks, the clearing member shall either deposit, orpresent a Bank Order to Pay, an amount in the minimum-fluctuation currency equal to the contract
value based on the settlement price on the last day of trading. Such deposit shall be in the form ofsame-day funds to an account at a bank designated by the Clearing House. The bank Order to Pay
shall be in a form approved by the Clearing House, and shall promise to pay same-day funds on thedelivery day.
737.C.
Physical Delivery Euro versus Polish Zloty, Hungarian Forint and Czech Koruna
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A clearing member representing a customer that intends to accept delivery of Polish zloty, Hungarian
forint or Czech koruna in liquidation of his net long position in that foreign currency shall, no later than
11:00 a.m. on the last day of trading, present to the Clearing House a Buyer's Non-CLS Delivery
Commitment. In addition, the clearing member shall either deposit, or present a bank Order to Pay, anamount equal to the net Euro value of such customer's positions. Values for positions in contracts withminimum fluctuations denominated in Euros shall be the contract value based on the settlement priceon the last day of trading multiplied by the trading unit. If the buyer elects to pay by deposit, the deposit
shall be made by 9:00 a.m. on the first business day preceding the delivery day that is a business day
common to the Exchange, Chicago banks, New York City banks and banks for the Euro (“Target
system banks”). Such deposit shall be in the form of a wire transfer of same-day funds to an account ata bank designated by the Clearing House. If the buyer elects to pay by bank Order to Pay, an Order to
Pay from an Exchange-approved bank shall be presented to a bank designated by the Clearing Houseby 1:00 p.m. on the first business day preceding the delivery day that is a business day common to the
Exchange, Chicago banks, New York City banks and banks for the Euro (“Target system banks”). The
Bank Order to Pay shall be in a form approved by the Clearing House, and shall promise to pay sameday funds on the delivery day.
Subject to the preceding three paragraphs, if the Buyer's Non-CLS Delivery Commitment is received
later than 11:00 a.m. on the last day of trading, but not later than 8:00 a.m. on the following day, thebuyer's clearing member shall be assessed a fine on a per contract basis, the amount to be determined
by Exchange staff. Any deliveries memoranda or instructions received subsequent to 8:00 a.m. on the
day following the last day of trading shall be deemed a delivery obligation failure and acted upon inaccordance with Rule 743.B. The buyer shall have made all provisions necessary to receive delivery
within the country of issuance.
737.D.
Reserved
737.E.
Reserved
737.F.
Restrictions
From time to time, and frequently without warning, countries change the requirements and therestrictions on non-resident bank accounts. These take various forms including, but not limited to, noninterest-bearing deposit requirements, negative interest rates, prohibitions against investment in the
country, ceilings on the amount of deposit and restrictions on the period of time such deposits may be
maintained. It is the buyer's responsibility to be familiar with and in conformance with all regulations
pertaining to the holding of non-resident bank accounts in the country in which he desired to accept
delivery.

738.

FOREIGN CURRENCY SELLER’S DUTIES
738.A.

U.S. Dollar-Based Currency Contracts, Euro versus Polish Zloty, Hungarian Forint,
Czech Koruna Cross-Rate Contracts
The clearing member representing a customer delivering foreign currency in liquidation of his net shortposition shall, no later than 11:00 a.m. on the last day of trading, present to the Clearing House a
Seller's Non-CLS Delivery Commitment except Turkish Lira/ U.S. Dollar. Turkish Lira/ U.S. Dollar
commitments shall be submitted to the Clearing House within one hour following termination of tradingon the last day of trading.
738.B.
Physical Delivery Currency Cross-Rate
The clearing member representing a customer making delivery of a Physical Delivery Currency CrossRate Contract, except for cross-rate contracts referenced in Rule 738.A., in liquidation of his position
shall, no later than 11:00 a.m. on the last day of trading, present to the Clearing House a Seller's NonCLS Delivery Commitment. In addition, by 1:00 p.m. on the first day preceding the delivery day that is abusiness day common to the Exchange, Chicago banks and New York City banks, the clearing member
shall either deposit, or present a Bank Order to Pay, an amount equal to the trading unit. Such deposit
shall be in the form of same-day funds to an account at a bank designated by the Clearing House. The
Bank Order to Pay shall be in a form approved by the Clearing House, and shall promise to pay sameday funds on the delivery day. The Seller shall have made all provisions necessary to receive deliveryof the minimum-fluctuation currency within the country of issuance. The Seller’s clearing member shallbe responsible for delivering the foreign currency on the delivery date to a bank designated by the
Clearing House. The Exchange reserves the right to eliminate the requirement for sellers to post a
Bank Order to Pay in the event that a given country’s payments systems, which previously required aprior Bank Order to Pay posting, implements same-day finality of payment.

© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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Subject to the preceding two paragraphs, if the Seller's Non-CLS Delivery Commitment is received later
than 11:00 a.m. on the last day of trading, but not later than 8:00 a.m. on the day following the last dayof trading, the seller's clearing member shall be assessed a fine on a per-contract basis, the amount tobe determined by Exchange staff. Any deliveries memoranda or instructions received subsequent to
8:00 a.m. on the day following the last day of trading, shall be deemed a delivery obligation failure andacted upon in accordance with Rule 743.B.
738.C.
Reserved
738.D.
Reserved
738.E.
Restrictions
From time to time, and frequently without warning, countries change the requirements and therestrictions on non-resident bank accounts. These take various forms including, but not limited to, noninterest-bearing deposit requirements, negative interest rates, prohibitions against investment in the
country, ceilings on the amount of deposit and restrictions on the period of time such deposits may be
maintained. It is the seller’s responsibility to be familiar with and in conformance with all regulations
pertaining to the holding of non-resident bank accounts in the country in which he desired to makedelivery.

739.

DELIVERY DATE
Delivery shall be completed in accordance with the specifications of the separate contracts.

740.

PAYMENTSThe Clearing House shall designate a bank in each foreign country into which foreign currency shall bedelivered. These banks shall notify the Clearing House when foreign currency funds have been
received. In the case of Currency Contracts, the foreign currency delivery for each customer shall equal
the net short value of positions in that foreign currency. Values for positions in contracts with minimum
fluctuations denominated in U.S. dollars shall be the contract size. Values for positions in contracts withminimum fluctuations in foreign currency shall be the contract value based on the settlement price on
the last day of trading. In the case of Currency Contracts, the Clearing House shall, promptly after
receipt of notification that foreign currency funds have been received, transfer the U.S. dollar funds
previously deposited by the foreign currency buyer's clearing member to the account of the foreign
currency seller's clearing member.

741.

COSTS OF DELIVERY
The deliverer of a foreign currency shall bear the costs of transferring the foreign currency into a bankdesignated by the Clearing House. The receiver of a foreign currency shall bear the costs oftransferring the foreign currency out of the bank designated by the Clearing House. Such costs may
include, but are not limited to, wire transfer charges, negative interest charges and transaction fees.

742.

DELIVERY NETTING
742.A.
CLS Delivered Currency Futures Contracts
Exchange currency futures contracts delivered through the CLS Bank shall be netted according toprocedures specified by the Clearing House from time to time.
742.B.
Non-CLS Delivered Currency Futures Contracts
To facilitate spread trading between currency products where positions held to termination create
offsetting currency payment obligations, the Clearing House may net to the extent possible physicaldelivery payment obligations by clearing member customer by currency, in accordance with theprocedures outlined in the Clearing House Manual of Operations. Clearing members desiring netting of
obligations may only net payment obligations that arise from positions belonging to the same beneficial
account owner, and shall be required to submit a Delivery Netting Request form, which identifies the
final positions and net currency payments of a customer requesting delivery netting, to the Clearing
House by 11:00 a.m. on the last day of trading. For U.S. Dollar/ Canadian Dollar or E-micro U.S.
Dollar/Canadian Dollar Contracts only, such Delivery Netting Request form shall be submitted to theClearing House by 10:00 a.m. on the last day of trading. For Turkish Lira / U.S. Dollar Contracts such
Delivery Netting Request form shall be submitted to the Clearing House no later than one hour following
the termination of trading on the last day of trading.
Clearing members may also net delivery obligations within a given currency following the last day of
trading in such eligible currency product, except for U.S. Dollar/ Canadian Dollar, E-micro U.S. Dollar/© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

Page 12 of 15

Canadian Dollar or Turkish Lira / U.S. Dollar Contracts. Clearing members may net delivery obligations
across all accounts belonging to the same beneficial account owner.
Clearing members are prohibited from netting open positions across customer accounts while acurrency contract remains eligible for trading on the Exchange.
Clearing members shall be required to submit a Delivery Netting Request, which identifies the final
positions and net currency delivery obligations to the Clearing House by 11:00 a.m. (10:00 a.m. for U.S.
Dollar/ Canadian Dollar or E-micro U.S. Dollar/ Canadian Dollar Contracts and no later than one hour
following the termination of trading for the Turkish Lira / U.S. Dollar Contracts), on the last day of
trading, in accordance with the procedures outlined in the Clearing House Manual of Operations.

743.

DELIVERY INFRACTIONS
743.A.
Late or Inaccurate Delivery
1. If a clearing member with a Delivery Commitment to pay funds pursuant to Rules 731, 732, 737 or
738 fails to deposit such funds in order to make timely payment on the date required in those rules,
the Clearing House may impose a fine upon the clearing member pursuant to the schedule of fines
maintained by the Clearing House or any other compensation due to the late or inaccurate delivery.
If by 9:30 a.m. Chicago time on the day following the date required in Rules 731, 732, 737 and 738,
such deposit is not made, the failure shall be deemed a delivery obligation failure of the clearing
member and the matter shall be acted upon pursuant to Section B of this Rule.
Funds deposited pursuant to Rules 731, 732, 737 and 738 earlier than the required date of deposit
shall not earn interest for the early time period.
2.

If the information contained in either the Buyer's CLS on Non-CLS Delivery Commitment or the
Seller's CLS or Non-CLS Delivery Commitment is inaccurate so that delivery cannot be
accomplished in a timely manner, fines or damages may be assessed as in Section B below.
743.B.
Delivery Obligation Failure
A clearing member with a CLS or Non-CLS Delivery Commitment who fails to perform all acts requiredby this chapter, or whose actions or inactions have been deemed a delivery obligation failure shall be
liable for any loss sustained, which loss shall be computed, without duplication, as follows:
1. The Global Head of Clearing & Post-Trade Services or their designee shall determine the change,
if any, from the final settlement price on the last day of trading to the spot rate on the first day on
which the transaction could be consummated on the spot market at the earliest time it isdetermined that such a transaction could be completed.
2. The related charges suffered by the other party at any of its designated banks, the related charges
suffered by the Clearing House and any financial performance paid by the Clearing House pursuant
to Rule 702.
3. A sum not to exceed 1% of the U.S. dollar value of the contract. Such amount shall be set by the
Global Head of Clearing & Post-Trade Services or their designee, acting in their sole discretion,and shall be binding upon both parties to the contract, except no such sum shall be assessed
where a delivery obligation failure is occasioned by the circumstances delineated in Rule 701.
743.C.
Final Settlement in Delivery Obligation Failure
Upon notification to the Clearing House of a paired foreign currency delivery obligation failure inaccordance with Rule 702, in order to better ensure settlement finality, automatically and without any
further action the following shall occur simultaneously with respect to each such failure:
1. The defaulting clearing member and Affected Clearing member shall be released from their original
paired currency delivery obligations to each other;
2. The Clearing House shall be deemed to have entered into a contract with the Affected Clearing
Member on terms consistent with the failed contract the Affected Clearing Member had with thedefaulting clearing member (“Temporary Contract”);
3. The Clearing House and Affected Clearing Member shall be deemed to have entered into acontract with obligations that are opposite to those of the Temporary Contract (“Termination
Swap”); and4. The Clearing House’s and Affected Clearing Member’s obligations under the Temporary Contract
and the Termination Swap will completely offset and net such that the parties shall have no
obligation to deliver currencies to each other.
© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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Notwithstanding the provisions above, a clearing member that fails to fully perform its paired foreign
currency delivery obligation remains liable for losses and damages as provided in Rules 714 and 743.B.

744.-759.

[RESERVED]OTHER COMMODITIES760.

DELIVERY PROCEDURES IN OTHER COMMODITIESAll other commodities which do not have delivery provisions specified in this chapter shall be governedby the requirements of the relevant contract specification chapter.

761.-769.

[RESERVED]
ALTERNATIVE DELIVERY PROCEDURES

770.

DELIVERY OBLIGATION TRANSFER PROCEDURES
A clearing member that carries a futures position in a physically delivered contract that has expired as
the result of any party’s error, omission or outtrade discovered on or after the last day of trading may,with the consent of the account owner(s) or controller(s), transfer such position to an account withdifferent beneficial ownership; provided, however, that the parties to an error or outtrade must exercise
the utmost diligence to resolve the error or outtrade.
Notice of delivery obligation transfers must be made to the Clearing House. Such transfers require that
the Clearing House receive acceptance from an account(s) with different beneficial ownership andconfirmation of the agreed upon transfer by the initiating party. Such confirmation must be submitted inwriting on the form specified by the Clearing House. All positions transferred pursuant to this Rule shalltake place at the final settlement price of the contract; however this requirement does not prohibit cash
adjustments between the parties to the transfer.
Clearing member firms representing accounts that have transferred a trade pursuant to this Rule mustcorrectly report the change in open interest to the Clearing House pursuant to the schedule establishedby the Exchange.
In the event a delivery obligation transfer notification does not result in a trade transfer, delivery shalltake place as required under Exchange rules.
Nothing in this Rule relieves a clearing member of its responsibilities with respect to open positions in
an expiring contract month in a physically delivered contract as set forth in Rule 716.

771.

ALTERNATIVE NOTICE OF INTENTION TO DELIVER
A seller and buyer matched by the Exchange may agree to make and take delivery under terms or
conditions which differ from the terms and conditions prescribed by this Chapter, and the applicablechapter which contains the contract specifications for the products being delivered, and such otherrequirements as the Exchange may prescribe.
In such instances, matched clearing members shall execute an Alternative Notice of Intention to Deliver(“ANID”) in the form and manner prescribed by the Exchange and shall deliver a completed andexecuted copy of such notice to the Exchange. The delivery of an executed ANID to the Exchange shallrelease the clearing members and the Exchange from their respective obligations under the rules of this
Chapter and any other Exchange rules and requirements regarding physical delivery.
In executing such notice, clearing members shall indemnify the Exchange against any liability, cost, or
expense the Exchange may incur, for any reason, as a result of the execution, delivery or performanceof such contract or such agreement, or any breach thereof or default thereunder. Upon receipt of an
executed ANID, the Exchange will return to the clearing members all margin monies held for theaccount of each with respect to the contracts involved.

772.-779.

[RESERVED]SECURITY FUTURES PRODUCTS

780.

SECURITY FUTURES PRODUCTS
Deliveries of Security Futures Products effected on a Marketplace apart from the Chicago Mercantile
Exchange and cleared by the Clearing House per the provisions of Chapter 8-B shall be governed as© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

Page 14 of 15

set forth herein.

781.

DELIVERY OF UNDERLYING SECURITIESAt maturity of a physically-settled stock future, in addition to the final variation payment (if any), theClearing Member that is, or that represents, the seller shall be obligated to deliver, and the Clearing
Member that is, or that represents, the buyer shall be obligated to receive and pay for, a quantity of theunderlying security equal to the unit of trading at the aggregate purchase price.

782.

DESIGNATION OF DELIVERY FACILITIESClearing Members shall be required to designate a clearing member of the Options Clearing
Corporation (OCC) who is also a member of the Depository Trust Clearing Corporation (DTCC) tofacilitate deliveries of physically-settled stock futures. Such designations shall be made through theexecution of such agreements and per such procedures as the Clearing House may designate fromtime to time. Settlement of the obligations to deliver and pay for such underlying securities shall beeffected in accordance with the provisions of the OCC and DTCC. The parties to such delivery shallbear the costs associated with such delivery per the provisions of the OCC and DTCC.

783.

[RESERVED]

784.

FAILURE TO PERFORM
A failure by a clearing member with a delivery commitment to perform all acts required herein and allacts per the provisions of the OCC and DTCC shall be deemed a delivery obligation failure and may bedeemed an act detrimental to the interest or welfare of the Exchange. The Board shall determine andassess losses sustained, taking into account the settlement price, interest earnings foregone, and suchother factors as it deems appropriate. The Board may also assess such penalties as deemed
appropriate in addition to damages. Further, such clearing member shall be subject to such penalties
and remedies as may be prescribed by the provisions of the OCC and DTCC.

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 7
FACILITIES RELATED TO CME PRODUCTS
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