Chapter 1083
Cleared OTC London Silver Forwards (cash margin)
1083100.

SCOPE OF CHAPTER
This chapter is limited in application to the clearing of Silver Forwards, where the parties to thetransaction are “eligible contract participants” as defined in Section 1a(18) of the Commodity
Exchange Act. Silver Forwards are listed by NYMEX on behalf of COMEX for clearing-only.
Although the specifications for cleared Silver Forwards are set forth in this chapter, and theposition rules applicable to Silver Forwards are set forth in Chapter 5, Silver Forwards are nottraded on, nor are they traded subject to the rules of, COMEX in its capacity as a designatedcontract market. Clearing members that clear Silver Forwards are subject to rules generally
applicable to clearing members in Chapter 4 (Enforcement of Rules), Chapter 6 (Arbitration),
Chapter 7b (Delivery Facilities and Procedures), Chapter 8 (Clearing House and PerformanceBonds), and Chapter 9 (Clearing Members), as applicable. The clearing and settlement oftransactions in Silver Forwards shall also be subject to the provisions of Chapter 8-F of theCME Rulebook (Over-the-Counter Derivative Clearing).

1083101.

CONTRACT SPECIFICATIONS
1083101.A. Unit of Clearing
The unit of clearing shall be 0.001 troy ounce of Silver.

1083101.B. Hours for Clearing Entry
The Exchange shall determine the hours during which Silver Forwards may be submitted tothe Clearing House. Positions shall be initiated or closed out using off exchange transactions .

1083101.C. Minimum Price Increments
Minimum price fluctuations shall be in multiples of $.00001 per troy ounce which shall equal$0.00000001 per contract. Contracts shall not be made on any other price basis.

1083101.D. Valid Delivery Dates for Cleared Silver Forwards
Delivery in respect of Silver 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 Silver Forward issubsequently determined to fall on a day that is not a valid value date, the delivery date shallbe the following valid value date, unless such date falls in the calendar month following thecalendar month of the originally agreed delivery date, in which case the delivery date shall bethe preceding valid value date.

1083101.E. Delivery Price and Delivery Value
On the Delivery Date, the Delivery Price shall be the price agreed to by buyer and seller aspart of the original transaction, subject to Rule 1083101.C. The Delivery Value shall theDelivery Price multiplied by the number of fine troy ounces of Silver 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.

1083101.F. Position Accountability
Position accountability, as defined in Chapter 5 of the Rules, will apply to cleared positions
held in Silver Forwards.

1083101.G. Last Day of Clearing
The last day on which a Silver Forward transaction may be submitted for clearing in respect ofa specified delivery date shall be one valid business day prior to the delivery date.

1083101.H. Liquidation1.

At Maturity. After clearing of Silver Forwards in respect of a specified delivery date hasceased, in accordance with Rule 1083101.G. of this chapter, outstanding contracts forsuch delivery date shall be liquidated by delivery through book-entry transfer asprescribed in Rules 1083101.I and 1083102.

2.

Prior to Maturity. Exchange Rule 806 shall not apply to positions in Silver Forwards. Prior
to the Delivery Date, positions may be closed out upon the request of the clearing firm tothe Clearing House, and in the manner prescribed by the Clearing House.

1083101.I. Deliverable Standard
In respect of Silver Forwards, delivery shall be made through book-entry transfer of Silver in‘unallocated’ form via an account denominated in Silver operated by a member of London
Precious Metals Clearing Limited. Such Silver shall represent metal which meets or exceeds
the standards of the London Bullion Market Association within its Good Delivery Rules andGood Delivery Specifications for ‘Loco London’ delivery.

1083101.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.

1083102.

DELIVERY
1083102.A. Last Day of Clearing
By the time prescribed by the Clearing House on the Last Day of Clearing, as defined in Rule1083101.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 ofSilver, and account number; and(b) the name and address of the long Clearing Member's bank used for 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 ofSilver, 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.

1083102.B. Day of Delivery
On the Delivery date,
1. Clearing Members having open short positions (sellers) shall deliver Silver to the accountof the Clearing House as specified in Rule 1083101.I., by the time prescribed by theClearing House.
2. Clearing Members having open long positions (buyers) shall pay the Delivery Value, asdefined in Rule 1083101.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 Rule1083102.A. and successful fulfillment of the transfers described in Rule 1083102.B.1 and1083102.B.2, the Clearing House shall (i) deliver Silver to the account of the Clearing
Member with the open long position as provided in accordance with Rule 1083102.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 1083102.A.2.b, by the time prescribedby the Clearing House, provided, however, that if the Clearing House is unable to do so by
such time as a result of circumstances beyond its control, it will do so as soon aspracticable after the condition of impossibility has ceased to exist.

1083102.C. Amendments to Timings
The Exchange may amend the timings of notifications deliveries, and transfers under this Rule1083102 to reflect the adoption of daylight savings time in New York and/or London.

1083103.

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