CBOT Rule 702 (“Clearing Member Duties to the Clearing House”)
states, in part, “A clearing member carrying an account that is required to make or accept delivery
agrees to guarantee and assume complete responsibility for the performance of all delivery
requirements set forth in the rules.”
Given recent conditions in the Treasury securities and financing
markets, Clearing Members are reminded to exercise appropriate diligence with respect to ensuring
that they are prepared to meet their delivery obligations in December 2008 Treasury futures
contracts in a manner consistent with the requirements and schedules established in the
rules. Clearing Members should maintain appropriate communication with their customers who
hold positions in the expiring futures contracts to ensure a clear understanding of the delivery
requirements and to facilitate an orderly expiration.
Failure by a Clearing Member to perform its delivery obligations as
outlined in this Advisory Notice is considered a serious offense and will result in disciplinary
action by the Exchange.
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