Chapter 334
Cleared OTC London Gold Forwards (collateral margin)
334.00.

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 the specifications
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, nor are they traded subject
to the rules of, COMEX in its capacity as a designated contract market. Clearing members thatclear Gold 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 Performance Bonds), and Chapter 9 (Clearing Members), asapplicable. The clearing and settlement of transactions in Gold Forwards shall also be subject tothe provisions of Chapter 8-F of the CME Rulebook (Over-the-Counter Derivative Clearing).

334.01.

CONTRACT SPECIFICATIONS
334.01.A.

Unit of Clearing
The unit of clearing shall be in minimum increments of 0.001 fine troy ounces of gold.

334.01.B.

Hours for Clearing Entry
The Exchange shall determine the hours during which Gold Forwards may besubmitted to the Clearing House. Positions shall be initiated or closed out using offexchange transactions.

334.01.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 $0.000001 per contract. Contracts shall not bemade on any other price basis.

334.01.D.

Valid Delivery Dates for Cleared Gold Forwards
Delivery in respect of Gold Forwards shall be permitted for any valid value datemutually agreed to by buyer and seller, subject to a maximum valid delivery date
determined by the Exchange.
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 issubsequently 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 of the originally agreed delivery date, in whichcase the delivery date shall be the preceding valid value date.

334.01.E.

Delivery Price and Delivery Value
On the Delivery Date, the Delivery Price shall be the price agreed by buyer and seller
as part of the original transaction, subject to Rule 334.01.C. The Delivery Value shallthe 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 Price and Delivery Value in order to facilitate the netting of multiple contracts.
In such cases, the revised Delivery Price and Delivery Value shall be an arithmetic
average of the Delivery Price and Delivery Value of the constituent contracts,weighted by the number of fine troy ounces to be delivered in respect of eachcontract.

334.01.F.

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

334.02.

334.01.G.

Last Day of Clearing
The last day on which a Gold Forward transaction may be submitted for clearing inrespect of a specified delivery date shall be one valid business day prior to thedelivery date.

334.01.H.

Liquidation(1) At Maturity. After clearing of Gold Forwards in respect of a specified delivery datehas ceased, in accordance with Rule 334.01.G. of this chapter, outstanding contracts
for such delivery date shall be liquidated by delivery through book-entry transfer asprescribed in Rules 334.01.I and 334.02.
(2) Prior to Maturity. Rule 806 shall not apply to positions in Gold Forwards. Prior tothe 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.

334.01.I.

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

334.01.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.

DELIVERY
334.02.A.

334.02.B.

Last Day of Clearing
By the time prescribed by the Clearing House on the Last Day of Clearing, as definedin Rule 334.01.G, Clearing Members having either open long or open short positions
shall notify the Clearing 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 theacceptance of gold, and account number; and(b) the name and address of the long Clearing Member's bank used for the paymentof 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 deliveryof gold, and account number; and(b) the name and address of the short Clearing Member's bank used for the receipt ofUS dollars, and account number.
Day of Delivery
On the Delivery date,(1) Clearing Members having open short positions (sellers) shall deliver gold to theaccount of the Clearing House as specified in Rule 334.01.I., by the time prescribedby the Clearing House.
(2) Clearing Members having open long positions (buyers) shall pay the Delivery
Value, as defined in Rule 334.01.E, by such method as prescribed by the Clearing
House to the account of the Clearing House, by the time prescribed by the Clearing
House.

334.02.C.

334.03.

(3) Subject to the notification of the Clearing House of all of the information specified
in Rule 334.02.A. and successful fulfillment of the transfers described in Rule334.02.B(1) and 334.02.B(2), the Clearing House shall (i) deliver gold to the accountof the Clearing Member with the open long position as provided in accordance withRule 334.02.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 Rule334.02.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 a result of circumstances
beyond its control, it will do so as soon as practicable after the condition ofimpossibility has ceased to exist.
Amendments to Timings
The Exchange may amend the timings of notifications deliveries, and transfers under
this Rule 334.02 to reflect the adoption of daylight savings time in New York and/orLondon.

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