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Rule 811

Acceptance for Clearing and Novation

  1. Acceptance for Clearing.

    1. Coordination. The Clearinghouse shall coordinate with the Board of Trade and Clearing Members to accept or reject Contracts for clearing as quickly after receipt as technologically practicable.

    2. Conditions. The Clearinghouse shall accept Contracts for clearing when such Contracts have been received if the parties to such Contracts have clearing arrangements in place and have satisfied applicable risk limits imposed by the Clearing Member, the Board of Trade or the Clearinghouse.

    3. Fully Collateralized Swaps. The Clearinghouse shall ensure as quickly after receipt as technologically practicable that the Clearing Member has sufficient collateral to fully collateralize the position prior to accepting the Contract for clearing. A Contract that breaches pre-collateralized funding requirements will be rejected by the Clearinghouse.

  2. Novation. The Clearinghouse, by accepting a Contract offered to it for clearing, shall assume, in the place of each Clearing Member that is a party to such Contract, all liabilities and obligations imposed by such Contract to the Clearing Member that is the other party thereto and shall succeed to and become vested with all rights and benefits accruing therefrom. Such assumption by the Clearinghouse shall terminate all liabilities and obligations of the Clearing Member whose Contract is so accepted to the other Clearing Member which was a party to such Contract.

  3. Offsetting Contracts. Where, as the result of novation under this Rule, a Clearing Member has bought and sold Contracts for the same account with the same expiry or a put or call option with the same strike price and expiry, such purchase and sale will be offset by the Clearinghouse. Such a Clearing Member shall be required to pay the loss or entitled to collect the profit, as the case may be, upon such offsetting Contracts, and shall have no further rights or be under any further obligation with respect thereto. For purposes of this Rule, the first Contract made shall be deemed the first Contract offset.

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Signing up with Bitnomial, LLC requires additional verification with an FCM to trade futures. Futures accounts are offered by Bitnomial Clearing, LLC, a CFTC-registered FCM and NFA member. Trading in futures involves substantial risks. You should only trade in financial products that you are familiar with and understand the associated risks, and after carefully considering whether such trading is suitable in light of your investment experience, financial position, and investment objectives. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. See Bitnomial entity affiliation and registration disclosures and FCM financial and risk disclosures.