Sign In
← Return to Rulebook
Chapters
Products
Rule 816

Liquidation on Termination or Suspension of Clearing Member

If a Clearing Member is in default, has been suspended by the Clearinghouse, or ceases to be a Clearing Member, then such Person shall be prohibited from establishing new positions and all open Contracts carried by the Clearinghouse for such Person shall be closed-out as expeditiously as practicable such that:

  1. Open Contracts are transferred by the Clearing Member and accepted by one or more other Clearing Members, with the prior consent of the Clearinghouse, or transferred by the Clearinghouse to one or more other Clearing Members pursuant to an auction of the Contracts or other procedure instituted by the Clearinghouse;

  2. Contracts subject to outstanding delivery obligations are Physically Settled or transferred by the Clearinghouse to one or more other Clearing Members pursuant to an auction of the Contracts or other procedure instituted by the Clearinghouse;

  3. The President, or in the absence of the President, any Director, may determine that, in his or her opinion, liquidation be deferred for the protection of the financial integrity of the Clearinghouse; or

  4. Open Contracts are liquidated in the manner set forth in Rule 817 to the extent that paragraphs 1, 2, or 3 do not apply.

Start Trading

Trade US Perpetual Futures, Physical Futures, and Options on the Bitcoin Complex®, XRP, ETH, SOL, and more.

Signing up with Bitnomial, Inc. 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.