CME and CBOT have adopted amendments to CME and CBOT Rule 618 (“Satisfaction of Award”) related to the requirements concerning the satisfaction of arbitration awards ordered by panels of the Arbitration Committee. The revisions 1) require that monetary awards be paid within 15 days of receipt of the notice of decision; 2) require that proof of payment be provided to the Market Regulation Department no later than the business day following the payment; and 3) provide for a denial of certain privileges if proof of payment is not submitted within the required timeframe by members and member firms. In order to allow members sufficient time to arrange for full payment of the award, the payment timeframe has been extended from 3 to 15 days.
Harmonizing amendments have also been made to Rule 619 (“Appeal”) requiring a party appealing an arbitration decision to deposit an amount equal to the award with the exchange within 15 days. Additionally, the current 14-day provision for the filing of arguments and documents in support of and in opposition to an appeal has been increased to 15 days.
The amendments are effective immediately. The amendments are set forth below, with additions underscored and deletions overstruck.
618. SATISFACTION OF AWARD
In the absence of any request to correct an award, the award must be satisfied within three days of receipt of the notice of decision. A ny party directed to pay an award shall submit payment of any amount s due directly to the p erson receiving the award and shall also submit evidence of such payment to the Market Regulation Department.
Any decision rendered in a dispute among members resulting in a non-cash award or involving a claim, counterclaim, cross-claim or third-party claim that sought a recovery over $10,000 may be appealed to a hearing committee of the Board. All other decisions rendered by an arbitration panel are final and may not be appealed. In order to appeal a decision, a party must, within three business days
after recei ving a copy of the decision : A. File with the Market Regulation Department a written notice stating the grounds for appeal based upon the standards set forth in Rule 620, and B. Deposit with the Market Regulation Department the applicable fee established by the Exchange, together with a cashier's or certified check payable to CME in the amount of any monetary award against the appellant.
Failure to timely comply with these requirements for appeal, when applicable, shall constitute a waiver of any right to appeal and render the arbitrators’ decision final and binding.
4 days after filing a notice of appeal, the appellant shall file with the Market Regulation Department any argument and any documents or information that the appellant intends to use in support of the appeal. The appellee shall have 1 4 days thereafter to file whatever documents or information he intends to rely upon in opposition to the appeal. An extension beyond the 1 4-day filing period may be granted by the Market Regulation Department upon a showing of good cause. In the case of a non-cash award, the filing of the notice of appeal shall not stay the decision appealed from unless the panel from which the appeal is taken or the Chief Regulatory Officer specifically directs that the decision be stayed.
[The remainder of the rule is unchanged.]
Questions concerning the amendments should be directed to Michael Conti, Market Regulation Attorney, at 312.435.3648.