• Delivery Responsibilities in Treasury Futures Markets

      • To
      • Clearing Member Firms; Back Office Managers; Delivery Personnel
      • From
      • CME Clearing
      • #
      • 08-348
      • Notice Date
      • 18 November 2008
      • Effective Date
      • 18 November 2008
    • 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.