EXHIBIT A 

 

OCC Rules 

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CHAPTER VI – MARGINS 

RULE 610A – Member Specific Deposits 

(a) – (b) [No change] 

(c) Method of Making Withdrawals. (1) Member specific deposits made through the Depository’s 

EDP Pledge System may be withdrawn or released through such system on each business day 

between such times as the Corporation may specify, with authorization by the Corporation, so 

long as the margin requirements under this Chapter VI in respect of the account of the Clearing 

Member in respect of which the deposit was made would still be met after giving effect to such 

withdrawal or release. 

(2) Any member specific deposit made in accordance with this Rule shall be released by the 

Corporation on its own initiative at a time specified by the Corporation following the expiration 

date unless (i) the Corporation has received notice from the correspondent clearing corporation 

by such time indicating that the settlement obligations in respect of such short position have not 

been met; that the correspondent clearing corporation has determined to suspend, decline or 

cease to act for the Clearing Member in respect of whose account such deposit was made; or, that 

the correspondent clearing corporation has determined to prohibit or limit such Clearing 

Member’s access to services offered by the correspondent clearing corporation, in which case the 

deposit shall not be released until such time as the Corporation determines it has no further 

obligations in respect of the short position, or (ii) the Corporation has directed that the exercise 

be settled otherwise than through the correspondent clearing corporation, in which case the 

deposit shall not be released until the Corporation determines it has no further obligations in 

respect of the short position and approves the release of such deposit. 

(d) [No change] 

* * * * * 

RULE 610B – Third-Party Specific Deposits 

(a) – (c) [No change] 

(d) Method of Making Withdrawals. (1) An approved custodian may request the release of a 

third-party specific deposit by submitting a request through the Depository’s EDP Pledge 

System. No requested release shall be given effect by the Corporation unless (i) the margin 

requirements under this Chapter VI in respect of the customers’ account of the Clearing Member 

in respect of which the deposit was made would still be met after giving effect to such release; 

(ii) the Clearing Member has approved the release through the Depository’s EDP Pledge System, 

and (iii) the deposit is not subject to a “hold” instruction pursuant to Rule 610B(d)(3). 

(2) Any third-party specific deposit made in accordance with this Rule shall be released by the 

Corporation on its own initiative at a time specified by the Corporation on the business day 

following the exercise settlementexpiration date unless (i) the Corporation has received notice 
from the correspondent clearing corporation by such time indicating that the settlement 

obligations in respect of such short position have not been met; that the correspondent clearing 

corporation has determined to suspend, decline or cease to act for the Clearing Member in 

respect of whose account such deposit was made; or, that the correspondent clearing corporation 

has determined to prohibit or limit such Clearing Member’s access to services offered by the 

correspondent clearing corporation, in which case the deposit shall not be released until such 

time as the Corporation determines it has no further obligations in respect of the short position, 

(ii) the Corporation has directed that the exercise be settled otherwise than through the 

correspondent clearing corporation, in which case the deposit shall not be released until the 

Corporation determines it has no further obligations in respect of the short position and approves 

the release of such deposit, or (iii) the deposit is subject to a “hold” instruction pursuant to Rule 

610B(d)(3), in which case, notwithstanding clauses (i) or (ii), the deposit shall be treated in 

accordance with paragraph (e) of this Rule. 

(3) A Clearing Member may request a “hold” with respect to a third-party specific deposit by 

submitting an instruction requesting that the Corporation not release such deposit, either upon 

request of the relevant approved custodian or on its own initiative, for so long as such instruction 

is in effect.

(e) – (g) [No change] 

* * * * *

RULE 610C – Escrow Deposits 

A participating escrow bank, which must be a participant of the Depository unless it effects 

escrow deposits consisting only of cash, may effect escrow deposits in respect of short positions 

in stock put option contracts and index put or call option contracts and may effect “roll overs” 

and withdrawals of such deposits, and a Clearing Member may instruct the Corporation with 

regard to short positions to be covered by such deposits, by submitting instructions to the 

Corporation through an EDP Pledge System, subject to the following provisions of this Rule: 

(a) – (n) [No change] 

(o) Release of Escrow Deposits in Respect of Stock Put Options upon Expiration. Any escrow 

deposit in respect of a short position in stock put options shall be released by the Corporation on 

its own initiative at a time specified by the Corporation on the fourth business day following the 

expiration date for the short position covered by such escrow deposit, unless: 

(1) the Corporation has received notice from the correspondent clearing corporation indicating 

that the Clearing Member’s obligations in respect of such short position have not been satisfied, 

in which case the escrow deposit shall not be released until such time as the Corporation 

determines it has no further obligations in respect of the short position; or 

(2) the deposit is subject to a “hold” instruction, in which case the procedures set forth in 

paragraph (s) below shall apply. 
(p) Release of Escrow Deposits in Respect of Index Options upon Expiration. Any escrow 

deposit made in respect of a short position in index options shall be released by the Corporation 

on its own initiative at a time specified by the Corporation on the first business day following the 

expiration date for the short position covered by such escrow deposit, unless: 

(1) the Clearing Member carrying the short position is not in full compliance with its obligations 

to the Corporation; or 

(2) the deposit is subject to a “hold” instruction, in which case the procedures set forth in 

paragraph (s) below shall apply. 

(q) – (t) [No change] 

* * * * * 

CHAPTER VIII – EXERCISE AND ASSIGNMENT 

RULE 801 – Exercise of Options 

Issued and unexpired option contracts may, subject to Exchange Rules and the By-Laws, be 

exercised as follows: 

(a) A Clearing Member desiring to exercise an American option contract on any business day 

other than its expiration date shall submit exercise notices to the Corporation on such business 

day through electronic means prescribed by the Corporation for that purpose within such 

timeframe as the Corporation shall prescribe; provided that no option contract expiring on a day 

that is not a business day may be exercised on the business day immediately preceding its 

expiration date. The Corporation may change such timeframes upon not less than thirty days’ 

prior written notice to affected Clearing Members. Every submission of an exercise notice in 

accordance herewith shall become irrevocable at the applicable deadline specified by the 

Corporation on the date of submission. No Clearing Member shall revoke or modify any exercise 

notice after the applicable deadline. Each Clearing Member that files an exercise notice after the 

applicable deadline shall prepare and preserve, for not less than three years, a memorandum 

describing in reasonable detail the error that gave rise to late filing. 

(b) Any expiring American option contract may be exercised on its expiration date in accordance 

with Rule 805. Any capped or European option contract may be exercised (other than 

automatically exercised in the case of a capped option) only on its expiration date in accordance 

with Rule 805. Any binary options that meet the exercise parameters set forth in Rule 1501 will 

be automatically exercised in accordance with that rule. Notwithstanding the foregoing, any 

expiring flexibly structured index option contract, quarterly index option contract, monthly index 

option contract, weekly index option contract, short term index option contract or OTC index 

option contract that meets the exercise parameters set forth in Rule 1804(c) will be automatically 

exercised on its expiration date in accordance with that Rule. No option contract expiring on a 
day that is not a business day may be exercised on the business day immediately preceding its 

expiration date. 

(c) Option contracts may be exercised only in a unit of trading or an integral multiple thereof. 

Exercise notices may be filed in respect of opening purchase transactions which have not yet 

been accepted by the Corporation, and shall be assigned by the Corporation at the same time and 

in the same manner as exercise notices filed on the same business day in respect of issued option 

contracts, provided that any such exercise notice shall be deemed to be null and void and of no 

force or effect if the opening purchase transaction in respect of which it was filed is not accepted 

by the Corporation on the business day immediately following the date on which such exercise 

notice was filed. 

(d) Notwithstanding the foregoing provisions of this Rule, and except as otherwise provided in 

this paragraph (d), the Chief Executive Officer, Chief Operating Officer, or any delegate of such 

officer, may in the sole discretion of such person permit a Clearing Member to file any exercise 

notice after an applicable deadline prescribed pursuant to paragraph (a) of this Rule, solely for 

the purpose of correcting a bona fide error on the part of the Clearing Member or a customer, 

subject to the following conditions: 

(1) The Clearing Member shall request permission to file such exercise notice at a time early 

enough, in the judgment of the authorized individual acting on the request, to allow the 

Corporation to complete its nightly processing in a reasonably timely manner notwithstanding 

any delay resulting from the granting of the request. 

(2) The Clearing Member shall be liable to the Corporation for a late filing fee of $250,000 per 

line item listed on any exercise notice accepted for filing after the start of critical processing, and 

shall be informed of such fee at the time a request to file any exercise notice subject to such fee 

is submitted to the Corporation. Fifty percent of any late filing fee shall be distributed to the 

assigned Clearing Member or pro-rata to the assigned Clearing Members. 

The Corporation will not accept any late exercise request received after 6:00 A.M. Central Time 

(7:00 A.M. Eastern Time). Clearing Members that have been assigned a late exercise notice shall 

be notified of the assignment by 8:00 A.M. Central Time (9:00 A.M. Eastern Time). 

Notwithstanding any other provision of the Rules or By-Laws, the Corporation will not accept 

any request to revoke or modify a previously submitted exercise notice. 

(3) The Clearing Member shall deliver to the Corporation, within two business days after 

submitting a filing pursuant to this paragraph (d), a memorandum describing in reasonable detail 

the error that gave rise to such action. Every memorandum shall be reviewed by the Chief 

Executive Officer, Chief Operating Officer, or any other officer of the Corporation designated by 

the Chief Executive Officer or Chief Operating Officer, as applicable, and, in his or her sole 

discretion such officer shall make a submission for remission of any late filing fee pursuant to 

subparagraph (d)(5). 
(4) The filing of an exercise notice pursuant to this paragraph (d) may be deemed a violation of 

the procedures of the Corporation, and may be subject to disciplinary action pursuant to Chapter 

XII of the Rules. 

(5) The Corporation may remit, in whole or in part, any late filing fee imposed pursuant to 

subparagraph (d)(2), if the Chief Executive Officer or Chief Operating Officer, or, if it is not 

feasible for the Chief Executive Officer or Chief Operating Officer to take such action, then a 

Designated Officer finds that the filing giving rise to the fee was necessitated by circumstances 

beyond the reasonable control of the Clearing Member and its customer, or that remission is 

otherwise equitable in the circumstances. 

(6) An exercise notice accepted by the Corporation pursuant to this paragraph (d) after Midnight 

shall be deemed for all purposes to have been properly submitted to the Corporation on the 

preceding day. 

Filing of exercise notices after the applicable deadline specified by the Corporation shall not be 

permitted under any circumstances in respect of (i) futures options of such classes, or traded on 

such futures market(s), as may be designated by the Corporation and specified in its procedures 

or (ii) any exercise notice that the Corporation has determined not to be eligible for late 

processing. 

. . . Interpretations and Policies: 

.01 The Corporation may permit one or more Clearing Members to tender, revoke, or modify 

exercise notices by electronic data entry, provided that electronic data entry procedures shall not 

apply to exercises governed by Rule 805. See Rule 205 with respect to the extension of cut-off 

times in the event of power failures, equipment malfunctions, and other unusual or unforeseen 

conditions. 

.02 The Corporation may designate earlier cut-off times than those specified in Rule 801 when 

the Exchanges announce an early close. The Corporation shall give Clearing Members such 

notice of the designation of any such earlier cut-off time, including any change in the cut-off 

times specified in Rule 801(d)(2), as the Corporation deems practical under the circumstances. 

.03 The Corporation may make available to each Clearing Member, during a business day, 

updated information as to exercise notices submitted by such Clearing Member. Such updated 

information on exercises submitted by a Clearing Member shall be considered provisional and 

informational only and is subject to revision at any time. Only delivery advices and exercise and 

assignment reports (as the case may be) may be relied upon as definitively reflecting exercise 

notices accepted by the Corporation. 

.04 With respect to any securities or futures account, the Corporation shall process sell 

transactions in respect of American option contracts prior to exercises in respect of such 

contracts. 

* * * * * 
RULE 805 – Expiration Exercise Procedure 

(a) At or before such time and date as the Corporation shall from time to time specify with 

respect to each expiration date, the Corporation shall make available to each Clearing Member 

an Expiration Exercise Report. 

(b) Upon retrieving an Expiration Exercise Report, each Clearing Member may submit exercise 

instructions in response to such report through electronic means prescribed by the Corporation 

for that purpose. Such instructions shall indicate, with respect to each series of options listed for 

each of the Clearing Member’s accounts, the number of option contracts of that series, if any, to 

be exercised for that account. If no option contracts of a particular series are to be exercised for a 

particular account, the Clearing Member may so indicate opposite the title of that series. Each 

Clearing Member desiring to submit instructions in accordance with the preceding provisions of 

this subparagraph (b) shall submit such instructions to the Corporation before such time and date 

as the Corporation shall from time to time specify with respect to an expiration date. Instructions 

to exercise given pursuant to this subparagraph (b) shall become irrevocable at such time and 

date with respect to each expiration date as the Corporation shall from time to time specify. 

(c) If, after the deadline prescribed pursuant to subparagraph (b) for the submission of exercise 

instructions in response to Expiration Exercise Reports, but prior to the expiration time for such 

option contracts on the expiration date, a Clearing Member desires to exercise option contracts 

expiring on such expiration date in addition to those which the Clearing Member has previously 

instructed the Corporation to exercise, the Clearing Member may do so by tendering to the 

Corporation, prior to such expiration time, a written exercise notice on such form as the 

Corporation shall prescribe, provided that (i) the Corporation may designate in its procedures 

classes of futures options with respect to which no late exercise notices will be accepted; and (ii) 

the Corporation will not accept any late exercise notices with respect to OTC options. Reserved. 

(d) Each Clearing Member shall be deemed to have properly and irrevocably tendered to the 

Corporation, immediately prior to the expiration time for such option contracts on each 

expiration date, an exercise notice with respect to: 

(1) each option contract listed in the Clearing Member’s Expiration Exercise Report that the 

Clearing Member has instructed the Corporation to exercise in accordance with subparagraph (b) 

or (c), and 

(2) every option contract of each series listed in the Clearing Member’s Expiration Exercise 

Report that has an exercise price below (in the case of a call) or above (in the case of a put) the 

closing price of the underlying security by $0.01 or more, unless the Clearing Member shall have 

duly instructed the Corporation, in accordance with subparagraph (b), to exercise none, or fewer 

than all, of the option contracts of such series carried in such account, provided that in the case of 

options with an exercise price expressed as a multiple of the per-unit price, in making the above 

calculations such multiple shall be applied to the closing price. If a Clearing Member desires that 

any such option contract not be exercised, it shall be the responsibility of the Clearing Member 

to give appropriate instructions to the Corporation in accordance with subparagraph (b). 
(e) It shall be the duty of each Clearing Member to review each Expiration Exercise Report 

against the Clearing Member’s own position records and to verify the accuracy of the closing 

prices reflected in such report. If a Clearing Member discovers any error or omission in any 

Expiration Exercise Report, the Clearing Member shall immediately notify the Corporation 

thereof and cooperate with the Corporation in reconciling any discrepancies. If a Clearing 

Member’s position records reflect expiring option contracts not listed in its Expiration Exercise 

Report, and the Clearing Member and the Corporation are unable to reconcile their respective 

position records before the deadline for the submission of exercise instructions prescribed in 

subparagraph (b), the Clearing Member may exercise any option contracts not listed in its 

Expiration Exercise Report (to the extent that such option contracts are subsequently determined 

to have existed in the Clearing Member’s accounts) by tendering written exercise notices with 

respect to such option contracts in accordance with subparagraph (c). The Corporation shall have 

no liability to any Clearing Member or to any other person in respect of any loss or expense 

resulting from the exercise or non-exercise of any option contract due to any error or omission 

(whether relating to the inclusion of option contracts, the determination of closing prices, the 

making of computations or otherwise) in any Expiration Exercise Report. 

(f) With respect to any expiration date, the Corporation may in its discretion extend any or all of 

the times and dates prescribed pursuant to subparagraphs (a) and (b). If unusual or unforeseen 

conditions (including but not limited to power failures or equipment malfunctions) prevent the 

Corporation from making Expiration Exercise Reports available to Clearing Members on a 

timely basis, or Clearing Members from submitting on-line responses to such reports, prior to 

any applicable deadline, the Corporation, in its discretion, may prescribe such alternative 

procedures for exercising expiring options period as the Corporation deems reasonable, 

practicable and equitable under the circumstances. Notwithstanding the foregoing, in no event 

shall the deadline for submitting exercise instructions be extended beyond the expiration time for 

such option contracts except pursuant to Article VI, Section 18 of the By-Laws. 

(g) In the event that a Clearing Member tenders an exercise notice pursuant to subparagraph (c) 

(a “supplementary exercise notice”) after the deadline prescribed pursuant to subparagraph (b) 

for the submission of exercise instructions in response to Expiration Exercise Reports, such 

Clearing Member shall be liable to the Corporation for a late filing fee of $250,000 per line item 

for any supplementary exercise notice tendered after the commencement of critical expiration 

processing and shall be informed of such fee at the time the supplementary exercise notice is 

tendered. 

The tender of a supplementary exercise notice may also be deemed to be a violation of the 

procedures of the Corporation, and may be subject to disciplinary action pursuant to Chapter XII 

of the Rules. 

(h) Notwithstanding the provisions of subparagraph (g), exercise instructions properly given in a 

supplementary exercise notice shall be valid and effective provided that such exercise notice is 

tendered prior to the expiration time for the option contracts sought to be exercised and in 

accordance with the procedures prescribed by the Corporation from time to time. Any tender of a 

supplementary exercise notice not made in accordance with such prescribed procedures shall be 
deemed null and void. If a Clearing Member files an exercise notice after the deadline prescribed 

pursuant to subparagraph (b) for the submission of exercise instructions in response to Expiration 

Exercise Reports, the Clearing Member shall be obligated to advise the Corporation in writing of 

the specific reasons therefor within two business days thereafter. 

(i) The Corporation may remit, in whole or in part, any filing fee imposed pursuant to 

subparagraph (g), if the Chief Executive Officer or Chief Operating Officer, or, if it is not 

feasible for the Chief Executive Officer or Chief Operating Officer to take such action, then a 

Designated Officer finds that the tendering of the supplementary exercise notice giving rise to 

the fee was necessitated by circumstances beyond the reasonable control of the Clearing Member 

or its customer, or that remission is otherwise equitable under the circumstances. 

(gj) The term “closing price”, as used with respect to an underlying security in this Rule 805, 

including the underlying security for cash-settled equity flex options, means the last reported sale 

price for the underlying security during regular trading hours (as determined by the Corporation) 

on the trading day immediately preceding the expiration date, or on the expiration date if the 

expiration date is a trading day, on such national securities exchange or other domestic securities 

market as the Corporation shall determine. Notwithstanding the foregoing, if an underlying 

security was not traded on such market during regular trading hours on the trading day 

immediately preceding the expiration date, or if the underlying security was traded during 

regular trading hours on such trading day but the Corporation is unable to obtain a last sale price, 

the Corporation may, in its discretion, (i) fix a closing price on such basis as it deems appropriate 

in the circumstances (including, without limitation, using the last sale price during regular 

trading hours on the most recent trading day for which a last sale price is available) or (ii) 

suspend the application of subparagraph (d)(2) to option contracts for which that security is an 

underlying security. During the term of any such suspension, Clearing Members may exercise 

such option contracts only by giving affirmative exercise instructions in accordance with 

subparagraph (b) or (c). 

(m) [Rescinded September 20, 1982.] 

. . . Interpretations and Policies: 

.01 When the day immediately preceding a Saturday expiration date is a holiday under Exchange 

Rules, the Corporation may, upon reasonable notice to Clearing Members, advance the exercise 

procedures provided for in Rule 805 by 24 hours. In that event: 

(1) Expiration Exercise Reports will be made available by the Corporation, and Clearing 

Members will be required to submit exercise instructions in response to such Reports, on the day 

immediately preceding the expiration date. 

(2) The provisions of Rule 805 with respect to the irrevocability of exercise instructions 

(including instructions deemed to have been given pursuant to Rule 805(d)(2)) shall apply 

notwithstanding the completion of exercise procedures on the day before the expiration date. 
(3) Clearing Members may tender supplementary exercise notices at any time prior to the 

expiration time for such option contracts in accordance with Rule 805(c), but subject to the 

provisions of Rules 805(g) and (h). 

.02 The exercise thresholds provided for in Rule 805(d) and elsewhere in the rules are part of the 

administrative procedures established by the Corporation to expedite its processing of exercises 

of expiring options by Clearing Members, and are not intended to dictate to Clearing Members 

which positions in customers’ accounts should or must be exercised. 

.03 The exercise procedures set forth in Rule 805 shall apply to the exercise of flexibly 

structured equity options (physically settled and cash settled, except that an American-style 

flexibly structured option on fund shares that is cash settled and subject to delayed settlement for 

any deliverable component will not be subject to Rule 805(d)), quarterly equity options, monthly 

equity options, weekly equity options and short term equity options, except that the time when 

the Corporation makes an Expiration Exercise Report available pursuant to paragraph (a) of Rule 

805, and the time specified by the Corporation as the deadline for the submission of exercise 

instructions pursuant to paragraph (b) of Rule 805 for such options, may be different from the 

corresponding times that apply to standard options. 

.04 With respect to any securities or futures account, the Corporation shall process sell 

transactions in respect of option contracts prior to exercises in respect of such contracts.

* * * * * 

CHAPTER IX – DELIVERY OF UNDERLYING SECURITIES AND PAYMENT 

RULE 901 - Settlement Through Correspondent Clearing Corporations 

(c) It will ordinarily be the policy of the Corporation to cause settlement of exercised stock 

option contracts and matured physically-settled stock futures contracts for CCC-eligible 

securities that are scheduled to be settled on the first business day after exercise or maturity (i.e., 

securities that do not settle “regular way” as defined in the rules and procedures of the 

correspondent clearing corporation) to be made through the facilities of the correspondent 

clearing corporation in accordance with the rules and procedures of the correspondent clearing 

corporation. If such settlement obligations are reported to and are not rejected by the 

correspondent clearing corporation prior to the time when it becomes unconditionally obligated, 

in accordance with its rules, to effect settlement in respect thereof or to close out the securities 

contract arising therefrom, the Corporation shall have no further obligation in respect of such 

settlement obligations. However, the Corporation may in its discretion determine to alter this 

policy in particular circumstances. 

(d) A specification in any Delivery Advice that settlement is to be made through the facilities of 

the correspondent clearing corporation pursuant to this Rule 901 may be revoked by the 

Corporation at any time prior to the obligation time by an appropriate notice to the Receiving and 

Delivering Clearing Members. In the event of such revocation, delivery and payment shall be 

made in accordance with Rules 903 through 912; provided, however, that the Chief Executive 
Officer or Chief Operating Officer, or, if it is not feasible for the Chief Executive Officer or 

Chief Operating Officer to take such action, then a Designated Officer of the Corporation may, 

upon the application of the Receiving or the Delivering Clearing Member, extend or postpone 

the time for delivery to a date not more than twoone business days after the date of such 

revocation. 

(e) When an exercise notice is properly tendered to the Corporation pursuant to Rule 801, or 

when the maturity date of a physically-settled stock future occurs, prior to an “ex” date (as fixed 

by the primary market for the underlying security) for any distribution, whether or not an 

adjustment is required to be made pursuant to the By-Laws, Clearing Members effecting 

settlement in respect thereof pursuant to this Rule shall have such rights and obligations in 

respect of such distribution as may be provided under the rules and procedures of the 

correspondent clearing corporation; provided, however, that the Corporation may in its discretion 

direct that additional adjustments be made as between Receiving and Delivering Clearing 

Members to prevent inequities in respect of any distribution. 

(f) An Appointing Clearing Member may, in lieu of being a participant of the correspondent 

clearing corporation, appoint, in such manner as the Corporation shall from time to time 

prescribe, an Appointed Clearing Member to act on its behalf with respect to the settlement of all 

exercised or matured cleared securities in the accounts of the Appointing Clearing Member 

which are settled through the correspondent clearing corporation pursuant to this Rule 901. An 

appointment pursuant to this subparagraph shall become effective as of the secondfirst business 

day following the day on which the Corporation shall receive written notice, in such form as the 

Corporation shall from time to time prescribe, from the Appointed Clearing Member of its 

acceptance of the appointment, or such later date as may be specified by the Appointed Clearing 

Member, and (unless the Corporation shall terminate the appointment at an earlier time) shall 

remain effective until the close of business on the thirtieth calendar day after the Corporation 

shall have received, from either the Appointing Clearing Member or the Appointed Clearing 

Member, written notice of revocation of the appointment, and shall remain effective thereafter, 

with respect to each obligation to make delivery or payment in respect of exercised or matured 

cleared securities directed to the Appointed Clearing Member for settlement prior to the effective 

date of the revocation, until settlement of such obligation is completed. During the effectiveness 

of such an appointment, the Corporation shall report each obligation of the Appointing Clearing 

Member to make delivery or payment in respect of an exercised or matured cleared security to 

the correspondent clearing corporation, and the Appointed Clearing Member shall be deemed to 

be the Delivering Clearing Member or the Receiving Clearing Member, as the case may be, in 

respect of each such contract for all purposes under this Rule 901. For purposes of Rule 211, any 

report made available to an Appointed Clearing Member shall be deemed to have been made 

available to the Appointing Clearing Member at the time that it is made available to the 

Appointed Clearing Member. 

(g) A Canadian Clearing Member on behalf of which CDS maintains an identifiable subaccount 

in a CDS account at the correspondent clearing corporation may appoint, in such manner as the 

Corporation shall from time to time prescribe, CDS to act on its behalf with respect to the 

settlement of all exercised or matured cleared securities in the accounts of the Canadian Clearing 

Member which are settled through the correspondent clearing corporation pursuant to this Rule 
901. An appointment pursuant to this subparagraph shall become effective as of the secondfirst 

business day following the day on which the Corporation shall receive written notice of the 

appointment from the Canadian Clearing Member, or such later date as may be specified by the 

Canadian Clearing Member, and (unless the Corporation shall terminate the appointment at an 

earlier time) shall remain effective until the close of business on the thirtieth calendar day after 

the Corporation shall have received, from either the Canadian Clearing Member or CDS, written 

notice of revocation of the appointment, and shall remain effective thereafter, with respect to 

each obligation to make delivery or payment in respect of exercised or matured cleared securities 

directed to CDS for settlement prior to the effective date of the revocation, until settlement of 

such obligation is completed. During the effectiveness of an appointment pursuant to this 

subparagraph, the Corporation shall report each obligation of the Canadian Clearing Member to 

make delivery or payment in respect of an exercised or matured cleared security to the 

correspondent clearing corporation. 

* * * * * 

RULE 903 - Obligation to Deliver 

When a Delivery Advice or the Corporation directs that settlement be made on a broker-tobroker basis, the Delivering Clearing Member shall deliver each underlying security specified in 

the Delivery Advice against payment of the aggregate purchase price therefor on the delivery 

date specified therein, which, in the case of options, shall be the secondfirst business day 

following the day on which the exercise notice was, or is deemed to have been, properly tendered 

to the Corporation pursuant to Chapter VIII of the Rules, and, in the case of security futures, 

shall be the secondfirst business day following the maturity date, except for series that are 

designated by the Exchange on which such series are traded for settlement on the first business 

day following the maturity date of the applicable series, provided that: 

(a) the Corporation may designate a different delivery date for property that is deliverable as a 

result of an adjustment of a contract pursuant to the By-Laws and Rules; and 

(b) the Chief Executive Officer, Chief Operating Officer or delegate of such officer may extend 

or postpone the time for delivery whenever, in such person’s opinion, such action is required in 

the public interest or to meet unusual conditions. 

* * * * * 

CHAPTER XIII – FUTURES, FUTURES OPTIONS AND COMMODITY OPTIONS 

RULE 1302 - Delivery of Underlying Securities 

At maturity of a physically-settled stock future, in addition to the final variation payment (if any) 

required by Rule 1301(d), the Clearing 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 the underlying security equal to the unit of trading 

at the aggregate purchase price. Settlement of the obligations to deliver and pay for such 
underlying securities shall be effected in accordance with the provisions of Chapter IX of the 

Rules. The delivery date shall be the secondfirst business day following the maturity date of the 

applicable series of physically-settled stock futures except for series that are designated by the 

Exchange on which such series are traded for settlement on the first business day following the 

maturity date of the applicable series. 

* * * * * 

RULE 1302B – Delivery of Underlying Treasury Securities 

(a) A Clearing Member that is, or represents, the seller in respect of a physically-settled Treasury 

future may make delivery of the underlying Treasury securities on any business day of the 

maturity month for such physically-settled Treasury future and, in the case of a physically-settled 

Treasury future for which the underlying Treasury security is a Treasury Note designated by the 

Exchange as “medium-term” or “short-term,” on the first, second or third business day of the 

month following the maturity month. A Clearing Member that has not closed out a short position 

in a series of physically-settled Treasury futures prior to the close of trading on the last trading 

day for such series must make delivery no later than the last permissible delivery date. The 

delivery process shall be initiated through the submission (or deemed submission) by such 

Clearing Member of a delivery intent in accordance with this Rule 1302B. The delivery date for 

each physically-settled Treasury future in respect of which a delivery intent has been submitted 

(or deemed to have been submitted) shall be the secondfirst business day following such 

submission (or deemed submission). The Corporation shall from time to time in its discretion 

prescribe the times by which Clearing Members must submit delivery intents, make delivery or 

payment or take certain other actions required by this Rule 1302B in connection with deliveries 

of the underlying interests for physically-settled Treasury futures. 

(b) – (c) [No change] 

(d) By the applicable deadline on the secondfirst business day preceding the first day of a 

delivery month for physically-settled Treasury futures and on each business day thereafter 

through and including the final trading day within such delivery month, each Clearing Member 

that is, or represents, the buyer shall provide to the Corporation, in such format as the 

Corporation may prescribe, a report of all open long positions in such futures, grouped by 

account type and trade date. 

(e) A Clearing Member intending to make delivery in respect of a short position in physicallysettled Treasury futures on a particular delivery date shall tender a delivery intent by the 

applicable deadline on the secondfirst business day preceding such delivery date. The 

Corporation shall assign delivery intents in accordance with prescribed procedures to Clearing 

Members with open long positions in the same series of futures, and such Clearing Members 

shall be obligated to take delivery. Upon making such assignment, the Corporation shall furnish 

to each Delivering Clearing Member the names of the Receiving Clearing Members assigned to 

take delivery from such Delivering Clearing Member, and to each Receiving Clearing Member 

the names of the Delivering Clearing Members assigned to make delivery to such Receiving 

Clearing Member. 
(f) – (i) [No change] 

(j) If a physically-settled Treasury future carried in a short position remains open subsequent to 

the close of trading on the last trading day for the relevant series of physically-settled Treasury 

futures, and the Corporation has not received a delivery intent with respect to such future by the 

applicable deadline on the secondfirst business day preceding the final permissible delivery date, 

the Clearing Member shall be deemed to have submitted a delivery intent in respect of each such 

future (and shall be deemed to be a Delivering Clearing Member), and, in the event that the 

Clearing Member fails to make delivery of the underlying Treasury security, the provisions of 

Rule 1308B shall apply. 

(k) [No change] 

* * * * * 

RULE 1305 – Exercise Procedures for Options on Futures 

(b) The expiration exercise procedures set forth in Rule 805 shall apply to options on futures 

contracts except for paragraphs (d) and (gj) thereof. The provisions of Rule 805 shall be 

supplemented by paragraphs (b) and (c) of this Rule. 

* * * * * 

CHAPTER XIV – TREASURY SECURITIES OPTIONS 

RULE 1401 – Expiration Exercise Procedure for Treasury Securities Options 

The expiration exercise procedures set forth in Rule 805 shall be applicable to European-style 

Treasury securities options, except paragraph (gj) thereof. For purposes of this Rule 1401, the 

term “closing price” as used with respect to an underlying security in Rule 805 means the price 

provided by the Exchange to the Corporation. Notwithstanding the foregoing, if the Exchange 

does not furnish a closing price or if two or more Exchanges trade Treasury securities options on 

the same underlying security and provide different prices for such security, the Corporation may, 

in its discretion, (i) fix a closing price on such basis as it deems appropriate in the circumstances 

or (ii) suspend the application of Rule 805(d)(2) to options contracts for which that security is the 

underlying security. During the term of any such suspension, Clearing Members may exercise 

such contracts only by giving affirmative exercise instructions in accordance with Rules 805(b)

or (c). 

* * * * * 

RULE 1402 – Exercise Settlement Date for Treasury Securities Options 

(a) The exercise settlement date for Treasury securities options shall be the secondfirst business 

day following the expiration date. 
* * * * * 

RULE 1404 – Failure to Match 

(a) If the Corporation, pursuant to Rule 1403(d), receives timely notice of a failure to match a 

trade, the affected Clearing Members shall attempt to resolve any such failure so that settlement 

may still occur through FICC by such time on the secondfirst business day following the 

expiration date as the Corporation shall specify. If by such deadline the failure has not been 

resolved and the trade has still not been successfully matched at FICC, the Delivering Clearing 

Member and the Receiving Clearing Member shall notify the Corporation in such manner and 

within such time on the secondfirst business day following the expiration date as the Corporation 

shall specify. If the Corporation has not received such notification by the specified deadline, 

regardless of whether settlement actually occurs, any obligation of the Corporation to guarantee 

or effect settlement shall be extinguished as of such deadline (unless such obligation has already 

been extinguished pursuant to Rule 1403(b)), provided however that the Delivering Clearing 

Member and the Receiving Clearing Member shall not be relieved of any settlement obligations 

they may have to FICC or one another. 

* * * * * 

CHAPTER XV – BINARY OPTIONS; RANGE OPTIONS 

RULE 1503 - Exercise Settlement Date for Event Options and Range Options 

(a) The exercise settlement date for a credit default option or credit default basket option shall be 

the secondfirst business day following the date on which the option is deemed to have been 

exercised; provided, however, that in the case of an option that is deemed to have been exercised 

on the expiration date, the exercise settlement date shall be the business day following the 

expiration date. 

* * * * * 

CHAPTER XXII – STOCK LOAN/HEDGE PROGRAM 

RULE 2201 – Instructions to the Corporation 

(a) – (b) [No change] 

(c) A Canadian Clearing Member on behalf of which CDS maintains an identifiable sub-account 

in a CDS account at the Depository may appoint, in such manner as the Corporation will from 

time to time prescribe, CDS to act on its behalf with respect to effecting delivery orders for stock 

loan and stock borrow transactions in the accounts of such Clearing Member through the 

Depository. An appointment pursuant to this paragraph will become effective as of the 

secondfirst business day following the day on which the Corporation receives written notice of 

the appointment from the Clearing Member, or such later date as may be specified by the 
Clearing Member, and (unless the Corporation terminates the appointment at an earlier time) will 

remain effective until the close of business on the thirtieth calendar day after the Corporation 

receives, from either the Clearing Member or CDS, written notice of revocation of the 

appointment, and remains effective thereafter, with respect to each obligation of the Clearing 

Member to close out open stock loan and borrow positions directed to CDS prior to the effective 

date of the revocation, until the close out of all such positions is completed. If, for any reason, 

CDS ceases to act on behalf of the Clearing Member with respect to effecting delivery orders for 

stock loan and stock borrow transactions, the Corporation may require the Clearing Member to 

close out open stock loan and borrow positions through buy-in and sell-out procedures, or any 

other procedures provided in the By-Laws or Rules, as necessary.

* * * * * 

RULE 2208 - Settlement Date 

(a) The termination of a Stock Loan, or any portion thereof, may be initiated by either (i) the 

Borrowing Clearing Member by giving the Depository instructions (including the appropriate 

“reason code”) to transfer a specified quantity of the Loaned Stock to the specified account of the 

Lending Clearing Member at the Depository, against payment of the settlement price in respect 

thereof (which shall be specified in such instructions) by the Lending Clearing Member to the 

specified account of the Borrowing Clearing Member at the Depository, or (ii) the Lending 

Clearing Member, by giving an irrevocable notice to the Borrowing Clearing Member, in such 

manner as the Corporation may specify from time to time and prior to a time established by the 

Corporation from time to time, that the Lending Clearing Member is terminating the Stock Loan, 

or a portion thereof, and specifying in such notice the number of shares of the Loaned Stock in 

respect of which the Lending Clearing Member is terminating the Stock Loan (the quantity of the 

Loaned Stock that the Borrowing Clearing Member wishes to return or that the Lending Clearing 

Member wishes to recall shall be referred to herein as the “Specified Quantity”). The settlement 

date for any such termination shall be the earlier of: (1) the date on which the Borrowing 

Clearing Member initiates the termination or (2) the date that is twoone stock loan business days

after the date on which the Lending Clearing Member initiates the termination. The fact that a 

Lending Clearing Member has initiated the termination of a Stock Loan, or a portion thereof, 

shall not preclude the Borrowing Clearing Member from terminating such Stock Loan, or a 

portion thereof, before the date that would otherwise have been the settlement date. 

* * * * * 

CHAPTER XXIIA – MARKET LOAN PROGRAM 

RULE 2209A - Termination of Market Loans 

(a) The termination of a Market Loan, or any portion thereof, may be initiated by (i) the 

Borrowing Clearing Member, by giving a return notice to the relevant Loan Market indicating its 

intention to return a specified quantity of the Loaned Stock, or (ii) the Lending Clearing 

Member, by giving a recall notice to the relevant Loan Market calling for the return of a 

specified quantity of the Loaned Stock. 
(1) – (2) [No change] 

(3) On each stock loan business day, any return/recall transactions originated through a Loan 

Market that are not settled by the Depository and confirmed by the Corporation shall have no 

further effect as to the Corporation; provided, however, that the Loan Market shall resubmit to 

the Corporation any return/recall transaction that was not completed, and the Corporation in turn 

shall resubmit its instructions to the Depository on the next stock loan business day. If (i) a recall 

transaction fails to settle by the Settlement Time on the secondfirst stock loan business day 

following the day that the transaction was first submitted, or (ii) a return transaction fails to settle 

by the Settlement Time on the stock loan business day on which it was submitted, the Lending 

Clearing Member or the Borrowing Clearing Member, as applicable, may initiate at any time 

thereafter the “buy-in” or “sell-out” process, as applicable, set forth in paragraphs (b) and (c) of 

this Rule, respectively. For purposes of clause (ii) of the preceding sentence, a return transaction 

submitted after a cutoff time specified by the Loan Market shall be deemed to have been 

submitted on the following stock loan business day. 

(b) – (c) [No change] 

(d) The relevant Loan Market may issue return/recall instructions to the Corporation to terminate 

all or a portion of the outstanding Market Loans carried in the account(s) of a Market Loan 

Clearing Member. If any such termination fails to settle on the specified termination date, the 

relevant Loan Market may direct the Lending Clearing Member or the Borrowing Clearing 

Member, as applicable, to initiate the buy-in or sell-out process described in this Rule, as 

applicable, in accordance with any instructions the Loan Market may provide. The Corporation 

may also at any time terminate the outstanding Market Loans relating to one or more particular 

Eligible Stocks upon a determination by the Corporation, in its sole discretion, that such action is 

warranted by reason of the lack of substantial volume in such Market Loans, the impending 

termination of business on the part of the Corporation, the inability of the Corporation from time 

to time to maintain in effect satisfactory arrangements with the Depository, or other 

circumstances in which the Corporation in its sole discretion determines that such action is 

necessary or appropriate for the protection of the Corporation, its Clearing Members or the 

public. For Market Loans terminated at the election of the Corporation, the Corporation shall 

provide written notice thereof to all affected Market Loan Clearing Members specifying the date 

on which such termination is to become effective, which date shall be a stock loan business day 

at least twoone stock loan business days after the date of such notice. If any such termination 

fails to settle on the specified termination date, the relevant Market Loan Clearing Members may 

initiate on the morning of the next stock loan business day the “buy-in” or “sell-out” process 

described in this Rule, as applicable. 

* * * * * 

CHAPTER XXV – BOUNDS 

RULE 2502 - Settlement Date for BOUNDs 
The settlement date for a BOUND contract shall be the secondfirst business day following the 

expiration date. Notwithstanding the foregoing, the Corporation may extend or postpone any 

cash settlement date or any delivery date for any class of BOUNDs whenever, in its opinion, 

such action is required in the public interest or for the protection of investors. 

* * * * * 

CHAPTER XXVII – PACKAGED SPREAD OPTIONS 

RULE 2702 – Exercise Procedure 

(a) The expiration exercise procedures set forth in Rule 805 shall apply to packaged spread 

option contracts except that (i) options deemed to have been exercised pursuant to subparagraph 

(d)(2) of Rule 805 shall be those packaged spread options for which the exercise settlement 

amount will be $1.00 or more per option contract (regardless of the account in which the contract 

is carried), or such other amount as the Corporation may from time to time establish on not less 

than 30 days prior written notice to all Index Clearing Members, and (ii) the term “closing price” 

as used elsewhere in Rule 805(e) shall be deemed to mean the current index value used by the 

Corporation in calculating the exercise settlement amount, or the exercise settlement amount 

itself, as the context requires. If such value or amount is unavailable at the time a report is issued 

in accordance with Rule 805(a), the Corporation may determine not to fix a value or amount for 

purposes of such report, in which case options may be exercised only through submission of an 

exercise instruction in accordance with Rule 805(b). Rule 805(i) does not apply to packaged 

spread options. 

* * * * * 
EXHIBIT B 

 

OCC By-Laws 

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ARTICLE XXI – STOCK LOAN/HEDGE PROGRAM 

Role of the Corporation 

SECTION 2. (a) – (b) [No change] 

(c) The Corporation may at any time terminate the outstanding Stock Loans relating to one or 

more particular Eligible Stocks upon a determination by the Corporation, in its sole discretion, 

that such action is warranted by reason of the lack of substantial volume in such Stock Loans, the 

impending termination of business on the part of the Corporation, the inability of the Corporation 

from time to time to maintain in effect satisfactory arrangements with the Depository, or other 

circumstances in which the Corporation in its sole discretion determines that such action is 

necessary or appropriate for the protection of the Corporation, its Clearing Members or the 

public. The Corporation may effect a termination pursuant to this paragraph (c) by giving written 

notice thereof to all affected Clearing Members specifying the date on which such termination is 

to become effective, which date shall be a stock loan business day at least twoone stock loan 

business days after the date of such notice. 

* * * * * 
EXHIBIT C 

 

Appointment of Clearing Member 

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Appointment of Clearing Member 

The undersigned Clearing Member (the "Appointing Clearing Member" or the "undersigned") of The 

Options Clearing Corporation ("OCC") hereby appoints ____________________________ 

___________________________ as its Appointed Clearing Member pursuant to OCC Rule 901(f). 

Capitalized terms used but not defined herein have the meanings ascribed to them in OCC’s By-Laws and 

Rules. 

In making this appointment, the undersigned understands and agrees as follows: 

1. This appointment shall permit the Appointed Clearing Member to act on behalf of the undersigned 

with respect to the settlement of all exercised and assigned cleared securities and all matured 

cleared securities in its accounts with OCC which are to be settled through a correspondent 

clearing corporation, as defined in OCC’s By-Laws, pursuant to the provisions of OCC Rule 901. 

2. This appointment shall have no effect with respect to any settlement of exercised, assigned or 

matured cleared securities between the undersigned and another Clearing Member of OCC which 

are effected on a broker-to-broker basis pursuant to any other applicable provisions of OCC's ByLaws and Rules as they may be amended from time to time. 

3. The undersigned will continue to be subject to OCC's margin requirements (as set forth from time 

to time in OCC's Rules) with respect to any exercised, assigned or matured cleared securities in its 

accounts with OCC directed to the Appointed Clearing Member for settlement through the 

National Securities Clearing Corporation (“NSCC”) or any successor thereto. 

4. In the event of the suspension of the Appointed Clearing Member by OCC, the Appointed 

Clearing Member ceasing to be a participant in NSCC or any default by the Appointed Clearing 

Member in its obligations to NSCC in respect of any of the exercised and assigned cleared 

securities and matured cleared securities of the undersigned, in each case for any reason 

whatsoever, OCC shall be entitled, in its discretion and in addition to taking any other action 

authorized by its By-Laws and Rules, to (a) close out exercised and assigned cleared securities and 

matured cleared securities of the undersigned which have been directed to the Appointed Clearing 

Member for settlement or (b), to the extent it is feasible to do so, direct that obligations of the 

undersigned to make delivery or payment in respect of an exercised or matured cleared security be 

settled between the undersigned and the contra Clearing Member of OCC to such cleared security 

on a broker-to-broker basis. 

5. The undersigned acknowledges that its obligations to OCC in respect of its exercised and assigned 

cleared securities and matured cleared securities shall not be satisfied until the Appointed Clearing 

Member has satisfied its obligations to NSCC arising from such cleared securities and OCC has no 

further responsibility in respect of such cleared securities to NSCC, and the undersigned 

accordingly acknowledges that OCC may use (a) any and all long positions, securities, margin and 

other funds and assets maintained by the undersigned in the OCC account from which such 

cleared securities originated and (b) the Clearing Fund contributions made by the undersigned, to 

satisfy any obligation of OCC resulting from such cleared securities, including any obligation of 

OCC to NSCC or the Appointed Clearing Member resulting from such cleared securities. The 

determination of OCC as to the amount of any such obligation shall be conclusive and binding 

against the undersigned and any other person, including any customer of the undersigned. 
6. The Appointed Clearing Member, in consideration of agreeing to so act for the undersigned, may 

require collateral from the undersigned to secure such Appointed Clearing Member for the 

Appointing Clearing Member's obligations to it. No part of the margin held by OCC for the 

undersigned shall be available to satisfy the undersigned's obligations to such Appointed Clearing 

Member. 

7. This appointment shall be effective as of the secondfirst business day following the day on which 

OCC shall receive written notice from the Appointed Clearing Member of its acceptance of this 

appointment, or such later date as may be specified by the Appointed Clearing Member, and shall 

thereafter remain effective as and to the extent specified in OCC Rule 901, or any successor 

thereto. 

8. In the event that OCC receives notice from NSCC to the effect that NSCC has incurred a loss in 

respect of the positions of the Appointed Clearing Member at NSCC, OCC may hold any or all 

margin funds and assets deposited by the undersigned with OCC until such time as NSCC advises 

OCC of the actual loss incurred by NSCC in respect of such positions. 

9. This Appointment of Clearing Member supersedes any Appointment of Clearing Member dated 

prior to the date of this Appointment of Clearing Member. 

Appointing Clearing Member: 

By: 

 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 
Acceptance of Appointment as 

Appointed Clearing Member

The undersigned, being the Appointed Clearing Member appointed by the above-signed Appointing 

Clearing Member pursuant to OCC Rule 901(f), hereby accepts such appointment effective twoone

business days from the date this acceptance is executed, or such later effective date as may be specified by 

the Appointing Clearing Member below. In accepting this appointment, the undersigned understands and 

agrees as follows: 

1. That it will act as agent of the Appointing Clearing Member for the purpose of settling all of such 

Appointing Clearing Member's obligations to make delivery or payment in respect of exercised or 

matured cleared securities through the undersigned's designated clearing corporation. 

2. That all margin requirements on such cleared securities will be the responsibility of the 

Appointing Clearing Member and that no part of the margin or any other positions, securities, 

funds or assets held by OCC for the account of such Appointing Clearing Member will be 

available to secure the Appointing Clearing Member's obligations to the undersigned. 

3. That it is the responsibility of the undersigned to require such collateral from the Appointing 

Clearing Member to secure the Appointing Clearing Member's obligations to the undersigned as 

the undersigned deems appropriate. 

4. That it will maintain at all times the net capital required by Rule 309A and acknowledges that it 

will be subject to the provisions of Rule 309A until this appointment is terminated. 

5. That, unless OCC shall terminate this appointment at an earlier time, this appointment shall 

remain effective until the close of business on the thirtieth calendar day after OCC shall have 

received notice of the revocation of this appointment by the undersigned or by the Appointing 

Clearing Member, and that this appointment shall remain effective thereafter, with respect to each 

obligation to make delivery or payment in respect of exercised or matured cleared securities 

directed to the Appointed Clearing Member for settlement prior to the effective date of the 

revocation, until settlement of such obligation is completed.

Appointed Clearing Member: 

By: 

 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 

Later Effective Date: 

Appointing Clearing Member: 
EXHIBIT D 

 

Appointment of CDS Clearing and Depository Services Inc. — Stock Settlement 

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Appointment of CDS Clearing and Depository Services Inc. — Stock Settlement 

The undersigned Clearing Member (the “Appointing Clearing Member” or the “undersigned”) of The 

Options Clearing Corporation (“OCC”) is a “Canadian Clearing Member” within the meaning of OCC’s 

By-Laws. The undersigned hereby appoints (this “Appointment”), pursuant to OCC Rule 901(g), CDS 

Clearing and Depository Services Inc. (“CDS”) to effect settlement of exercised and assigned cleared 

securities and matured cleared securities through a subaccount identified to the undersigned in an account 

maintained by CDS at National Securities Clearing Corporation (“NSCC”). Capitalized terms used but not 

defined herein have the meanings ascribed to them in OCC’s By-Laws and Rules. 

In appointing CDS to act on its behalf, the undersigned understands and agrees as follows: 

1. This Appointment shall permit CDS to act on behalf of the undersigned with respect to the 

settlement of all exercised and assigned cleared securities and all matured cleared securities in its 

accounts with OCC which are to be settled through NSCC pursuant to the provisions of OCC Rule 

901. 

2. This Appointment shall have no effect with respect to any settlement of exercised, assigned or 

matured cleared securities between the undersigned and another Clearing Member of OCC which 

are effected on a broker-to-broker basis pursuant to any other applicable provisions of OCC’s ByLaws and Rules as they may be amended from time to time. 

3. The undersigned will continue to be subject to OCC’s margin requirements (as set forth from time 

to time in OCC’s Rules) with respect to any exercised, assigned or matured cleared securities in its 

accounts with OCC directed to CDS for settlement through NSCC. 

4. In the event that NSCC ceases to act for CDS, CDS’ ceasing to be a participant in NSCC or any 

default by CDS in its obligations to NSCC in respect of any of the exercised and assigned cleared 

securities and matured cleared securities of the undersigned, in each case for any reason 

whatsoever, OCC shall be entitled, in its discretion and in addition to taking any other action 

authorized by its By-Laws and Rules, to (a) close out exercised and assigned cleared securities and 

matured cleared securities of the undersigned which have been directed to CDS for settlement or 

(b), to the extent it is feasible to do so, direct that obligations of the undersigned to make delivery 

or payment in respect of an exercised or matured cleared security be settled between the 

undersigned and the contra Clearing Member of OCC to such cleared security on a broker-tobroker basis. 

5. The undersigned acknowledges that its obligations to OCC in respect of its exercised and assigned 

cleared securities and matured cleared securities shall not be satisfied until CDS has satisfied its 

obligations to NSCC arising from such cleared securities and that OCC has no further 

responsibility in respect of such cleared securities to NSCC, and the undersigned accordingly 

acknowledges that OCC may use (a) any and all long positions, securities, margin and other funds 

and assets maintained by the undersigned in the OCC account from which such cleared securities 

originated and (b) the Clearing Fund contributions made by the undersigned, to satisfy any 

obligation of OCC resulting from such cleared securities, including any obligation of OCC to 

NSCC resulting from any default by CDS in its obligations to NSCC in respect of such cleared 

securities. The determination of OCC as to the amount of any such obligation of OCC shall be 
conclusive and binding against the undersigned and any other person, including any customer of 

the undersigned. 

6. CDS, in consideration of agreeing to so act for the undersigned, may require collateral from the 

undersigned to secure it for the undersigned’s obligations to it. No part of the margin held by OCC 

for the undersigned shall be available to satisfy the undersigned’s obligations to CDS. 

7. This Appointment shall be effective as of the secondfirst business day following the day on which 

OCC shall receive written notice from CDS of its acceptance of this Appointment, or such later 

date as may be specified by CDS, and shall thereafter remain effective as and to the extent 

specified in OCC Rule 901, or any successor thereto. 

8. In the event that OCC receives notice from NSCC to the effect that NSCC has incurred a loss in 

respect of the positions of CDS at NSCC, OCC may hold any or all margin funds and assets 

deposited by the undersigned with OCC until such time as NSCC advises OCC of the actual loss 

incurred by NSCC in respect of such positions. 

9. This Appointment of CDS supersedes any appointment of CDS or Canadian Depository for 

Securities Limited dated prior to the date of this Appointment of CDS. 

Canadian Clearing Member: 

By: 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 

Clearing Member Number: 

CDS Subaccount Number at the Depository: 

Last Revised: June 2014MM YY
CDS Acknowledgement of Appointment

The CDS Clearing and Depository Services Inc. (“CDS”) hereby acknowledges that a representative 

account has been established at CDS for the above-signed Canadian Clearing Member. In addition, CDS 

hereby acknowledges that: 

1. Effective on the earlier of _________________________ or the date on which the appointment is 

acknowledged by NSCC of such Canadian Clearing Member, CDS has been appointed by such 

Canadian Clearing Member to settle, through such Canadian Clearing Member’s CDS 

representative account with NSCC, such Canadian Clearing Member’s obligations to make 

delivery or payment in respect of exercised or matured cleared securities which are to be settled at 

NSCC. 

2. If CDS determines that it should require collateral to secure such Canadian Clearing Member’s 

obligations to CDS, CDS will require such collateral from such Canadian Clearing Member 

independent of the margin and other positions, securities, funds and assets held by OCC for the 

account of such Canadian Clearing Member to secure such Canadian Clearing Member’s 

obligations to OCC. 

3. Unless OCC shall terminate this appointment at an earlier time, this appointment shall remain 

effective until the close of business on the thirtieth calendar day after OCC shall have received 

notice of the revocation of this appointment by CDS or by such Canadian Clearing Member, and 

shall remain effective thereafter, with respect to each obligation to make delivery or payment in 

respect of exercised or matured cleared securities directed to CDS for settlement prior to the 

effective date of the revocation, until settlement of such obligation is completed. 

The CDS Clearing and Depository Services Inc. 

By: 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 

Last Revised: June 2014MM YY
Acknowledgement of Appointment of CDS by National Securities Clearing Corporation

The undersigned hereby acknowledges that (i) the above-signed Canadian Clearing Member has appointed 

CDS Clearing and Depository Services Inc. (“CDS”) to effect settlement of exercised, assigned and

matured cleared securities on its behalf and (ii) CDS is a participant in good standing of the undersigned. 

National Securities Clearing Corporation: 

By: 

Title: 

Signature: 

Date:_______________________________________ 

Last Revised: June 2014MM YY
EXHIBIT E 

 

Appointment of CDS Clearing and Depository Services Inc. — Stock Loan 

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Appointment of CDS Clearing and Depository Services Inc. — Stock Loan 

The undersigned Clearing Member (the “Appointing Clearing Member” or the “undersigned”) of The Options 

Clearing Corporation (“OCC”) is a “Canadian Clearing Member” and desires to be designated as a “Canadian 

Hedge Clearing Member,” both within the meaning of OCC’s By-Laws. The undersigned hereby appoints (this 

“Appointment”), pursuant to Interpretations and Policies .07 of Section 1 of Article V of OCC’s By-Laws or 

any successor thereto, CDS Clearing and Depository Services Inc. (“CDS”) as its agent to effect delivery and 

payment of stock loan and stock borrow transactions through a subaccount identified to the undersigned in an 

account maintained by CDS at the Depository Trust Company (the “Depository”). Capitalized terms used but 

not defined herein have the meanings ascribed to them in OCC’s By-Laws and Rules. 

In appointing CDS to act on its behalf, the undersigned understands and agrees as follows: 

1. This Appointment shall permit CDS to act on behalf of the undersigned with respect to the delivery 

and payment of stock loan and stock borrow transactions in its accounts with OCC which are to be 

settled through the Depository pursuant to the Stock Loan/Hedge Program provided for in Article XXI 

of the By-Laws and Chapter XXII of the Rules. 

2. The undersigned will continue to be subject to OCC’s margin requirements (as set forth from time to 

time in OCC’s Rules) with respect to any stock loan and stock borrow positions in its accounts with 

OCC directed to CDS for delivery or payment. 

3. In the event that the Depository ceases to act for CDS, CDS fails to be a participant of the Depository 

eligible to perform the necessary functions pursuant to this Appointment on behalf of undersigned, or 

in the event of any default by CDS in its obligations to the Depository with respect to effecting 

delivery orders of any of the stock loan or stock borrow transactions of the undersigned, in all cases for 

any reason whatsoever, OCC shall be entitled, in its discretion and in addition to taking any other 

action authorized by its By-Laws and Rules, to the extent it is feasible to do so, to direct that 

obligations of the undersigned to make delivery or payment in respect of an open stock loan or stock 

borrow position be settled between the undersigned and the contra Clearing Member of OCC to such 

position through alternative means. 

4. The undersigned acknowledges that its obligations to OCC in respect of its stock loan and stock 

borrow positions continue regardless of any non-performance by CDS or failure by CDS to satisfy its 

obligations to the Depository arising from such positions and that OCC has no further responsibility in 

respect of such positions to the Depository. The undersigned further acknowledges that OCC may 

treat any failure by CDS to complete delivery or payment required in connection with a stock loan or 

borrow transaction or position of the undersigned that is cleared, or to be cleared, by OCC pursuant to 

OCC’s By-Laws and Rules as a default by the undersigned, and OCC may exercise against the 

undersigned all remedies that OCC has under its By-Laws and Rules against a defaulting Clearing 

Member and the collateral deposited by the Clearing Member. The undersigned accordingly 

acknowledges that OCC may use (a) any and all long positions, securities, margin and other funds and 

assets maintained by the undersigned in respect of the OCC account from which such positions 

originated and (b) the Clearing Fund contributions made by the undersigned, to satisfy any obligation 

of OCC resulting from such positions, including any obligation of OCC to the Depository resulting 

from any default by CDS in its obligations to the Depository in respect of such positions. The 

determination of OCC as to the amount of any such obligation of OCC shall be conclusive and binding 

against the undersigned and any other person, including any customer of the undersigned. 
5. CDS, in consideration of agreeing to so act for the undersigned, may require collateral from the 

undersigned to secure it for the undersigned’s obligations to it. No part of the margin held by OCC for 

the undersigned shall be available to satisfy the undersigned’s obligations to CDS. 

6. This Appointment shall be effective as of the secondfirst business day following the day on which 

OCC shall receive written notice from the Appointing Clearing Member of CDS’ acceptance of this 

Appointment, or such later date as may be specified by the Appointing Clearing Member, and shall 

thereafter remain effective as and to the extent specified in Interpretations and Policies .07 of Section 1 

of Article V of OCC By-Laws, or any successor thereto. 

7. This Appointment of CDS in connection with OCC’s Stock Loan/Hedge Program supersedes any 

appointment of CDS or Canadian Depository for Securities Limited in connection with OCC’s Stock 

Loan/Hedge Program and dated prior to the date of this Appointment of CDS. 

Canadian Clearing Member: 

By: 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 

Clearing Member Number: 

CDS Subaccount Number at the Depository: 

Last Revised: June 2014MM YY
CDS Acknowledgement of Appointment

CDS Clearing and Depository Services Inc. (“CDS”) hereby acknowledges that an account has been established 

at CDS for the above-signed Canadian Clearing Member. In addition, CDS hereby acknowledges that: 

1. Effective on the earlier of _________________________ or the date on which the appointment is 

acknowledged by the Depository, CDS has been appointed by such Canadian Clearing Member to 

settle, through such Canadian Clearing Member’s CDS-sponsored account with the Depository, such 

Canadian Clearing Member’s obligations to make delivery or payment in respect of stock loan or stock 

borrow positions which are to be settled at the Depository. 

2. If CDS determines that it should require collateral to secure such Canadian Clearing Member’s 

obligations to CDS, CDS will require such collateral from such Canadian Clearing Member 

independent of the margin and other positions, securities, funds and assets held by OCC for the 

account of such Canadian Clearing Member to secure such Canadian Clearing Member’s obligations to 

OCC. 

3. Unless OCC shall terminate this appointment at an earlier time, this appointment shall remain effective 

until the close of business on the thirtieth calendar day after OCC shall have received written notice of 

the revocation of this appointment by CDS or by such Canadian Clearing Member, and shall remain 

effective thereafter, with respect to each obligation to make delivery or payment in respect of stock 

loan or stock borrow positions directed to CDS for settlement prior to the effective date of the 

revocation, until close out of all such positions is completed, provided that this provision shall not be 

construed to limit the right of CDS to suspend or cease to act for any Canadian Clearing Member as 

the result of any insolvency or event of default of the Canadian Clearing Member, and CDS agrees to 

inform OCC of any such occurrence as promptly as possible. 

The CDS Clearing and Depository Services Inc. 

By: 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 

Last Revised: June 2014MM YY
Acknowledgement of Appointment of CDS by Depository Trust Company 

The undersigned hereby acknowledges that (i) the above-signed Canadian Clearing Member has appointed CDS 

Clearing and Depository Services Inc. (“CDS”) to effect delivery and payment of stock loan and stock borrow 

transactions on its behalf and (ii) CDS is a participant of the undersigned eligible to perform the necessary 

functions on behalf of the Canadian Clearing Member during the period in which such Canadian Clearing 

Member has in effect such an appointment of CDS. 

Depository Trust Company: 

By: 

Title: 

Signature: 

Date:_______________________________________ 

Last Revised: June 2014MM YY
EXHIBIT F 

 

Designation of Clearing Member 

Red underlined text indicates new text 

Red strikethrough text indicates deleted text 
 

 

Designation of Clearing Member 

The undersigned Clearing Member (the "Designating Clearing Member" or the "undersigned") of The 

Options Clearing Corporation ("OCC") hereby designates ____________________________ 

___________________________ as its Designated Clearing Member for the purposes of effecting 

settlement of physically-settled Treasury securities option contracts, as defined in OCC’s By-Laws 

(“Treasury Securities Options”), and physically-settled treasury futures, as governed by Chapter XIII of 

OCC's Rules (“Treasury Futures”), though the Fixed Income Clearing Corporation (“FICC”). Capitalized 

terms used but not defined herein have the meanings ascribed to them in OCC’s By-Laws and Rules. 

 

In making this designation, the undersigned understands and agrees as follows: 

1. This designation shall permit the Designated Clearing Member to act on behalf of the undersigned 

with respect to the settlement of all exercised and assigned Treasury Securities Options contracts 

and all matured Treasury Securities Options and Treasury Futures contracts in its accounts with 

OCC which are to be settled through FICC pursuant to the provisions of OCC Rules. 

2. The undersigned will continue to be subject to OCC's margin requirements (as set forth from time 

to time in OCC's Rules) with respect to any exercised, assigned or matured Treasury Securities 

Options and Treasury Futures in its accounts with OCC directed to the Designated Clearing 

Member for settlement through FICC. 

3. In the event of the suspension of the Designated Clearing Member by OCC, the Designated 

Clearing Member’s ceasing to be a participant in the Government Securities Division of FICC or 

any default by the Designated Clearing Member in its obligations to FICC in respect of any of the 

exercised, assigned or matured Treasury Securities Options and Treasury Futures of the 

undersigned, in either case for any reason whatsoever, OCC shall be entitled, in its discretion and 

in addition to taking any other action authorized by its By-Laws and Rules, to close out exercised, 

assigned and matured Treasury Securities Options and Treasury Futures of the undersigned which 

have been directed to the Designated Clearing Member for settlement. 

4. The undersigned acknowledges that its obligations to OCC in respect of its exercised, assigned or 

matured Treasury Securities Options and Treasury Futures shall not be satisfied until the 

Designated Clearing Member has satisfied its obligations under OCC’s By-Laws and Rules arising 

from such Treasury Securities Options and Treasury Futures. In addition, OCC will presume trade 

match at FICC has occurred, and OCC will have no further responsibility in respect of such 

Treasury Securities Options and Treasury Futures after the relevant notification deadline has 

passed pursuant to OCC Rules, if OCC does not receive proper notification of a failure to match at 

FICC in accordance with OCC Rules. The undersigned acknowledges that OCC may treat any 

failure to complete delivery of Treasury securities or failure to match or make damages payments 

required in connection with a Treasury Securities Options and Treasury Futures as a default or rule 

violation under OCC’s By-Laws and Rules, and OCC may exercise against the undersigned all 

remedies that OCC has under its By-Laws and Rules against the undersigned. The undersigned 

accordingly acknowledges that OCC may use (a) any and all long positions, securities, margin and 

other funds and assets maintained by the undersigned in the OCC account from which such 

Treasury Securities Options and Treasury Futures originated and (b) the Clearing Fund 

contributions made by the undersigned, to satisfy any obligation of OCC resulting from such 

Treasury Securities Options and Treasury Futures, including any obligation of OCC to FICC of 

the Designated Clearing Member resulting from such Treasury Securities Options and Treasury 

Futures. The determination of OCC as to the amount of any such obligation shall be conclusive 
and binding against the undersigned and any other person, including any customer of the 

undersigned. 

 

5. The Designated Clearing Member, in consideration of agreeing to so act for the undersigned, may 

require collateral from the undersigned to secure such Designated Clearing Member for the 

Designating Clearing Member's obligations to it. No part of the margin held by OCC for the 

undersigned shall be available to satisfy the undersigned's obligations to such Designated Clearing 

Member. 

6. This designation shall be effective as of the secondfirst business day following the day on which 

OCC shall receive written notice from the Designated Clearing Member of its acceptance of this 

designation, or such later date as may be specified by the Designated Clearing Member, and, 

unless OCC shall terminate this designation at an earlier time, this designation shall remain 

effective until the close of business on the thirtieth calendar day after OCC shall have received 

notice of the revocation of this designation by the undersigned or by the Designating Clearing 

Member, and that this designation shall remain effective thereafter, with respect to each obligation 

to make delivery or payment in respect of exercised, assigned or matured Treasury Securities 

Options and Treasury Futures directed to the Designated Clearing Member for settlement prior to 

the effective date of the revocation, until settlement of such obligation is completed. 

8. This Designation of Clearing Member supersedes any Designation of Clearing Member dated 

prior to the date hereto. 

Designating Clearing Member: 

By: 

 

Title: 

(Authorized Partner or Officer) 

Signature: 

Date: 
Acceptance of Designation 

The undersigned, being the Designated Clearing Member designated by the above-signed Designating 

Clearing Member, hereby accepts such designation effective twoone business days from the date this 

acceptance is executed, or such later effective date as may be specified by the Designating Clearing 

Member below. In accepting this designation, the undersigned represents, understands and agrees as 

follows: 

1. That it is a participant in the Government Securities Division (“GSD”) of the Fixed Income 

Clearing Corporation (“FICC”) and will notify OCC in the event that it ceases to be a GSD 

participant. 

2. That it will act as agent of the Designating Clearing Member for the purpose of settling all of such 

Designating Clearing Member's obligations to make delivery or payment in respect of exercised, 

assigned or matured Treasury Securities Options and Treasury Futures through FICC. 

3. That all margin requirements on such Treasury Securities Options and Treasury Futures will be 

the responsibility of the Designating Clearing Member and that no part of the margin or any other 

positions, securities, funds or assets held by OCC for the account of such Designating Clearing 

Member will be available to secure the Designating Clearing Member's obligations to the 

undersigned. 

4. That it is the responsibility of the undersigned to require such collateral from the Designating 

Clearing Member to secure the Designating Clearing Member's obligations to the undersigned as 

the undersigned deems appropriate. 

5. That, unless OCC shall terminate this designation at an earlier time, this designation shall remain 

effective until the close of business on the thirtieth calendar day after OCC shall have received 

notice of the revocation of this designation by the undersigned or by the Designating Clearing 

Member, and that this designation shall remain effective thereafter, with respect to each obligation 

to make delivery or payment in respect of exercised, assigned or matured Treasury Securities 

Options and Treasury Futures directed to the Designated Clearing Member for settlement prior to 

the effective date of the revocation, until settlement of such obligation is completed.

Designated Clearing Member: 

By: 

 (Authorized Partner or Officer) 

Title: 

Date: 

Later Effective Date: 

Designating Clearing Member: