Chapter 6 Delivery

Article 43 The Exchange shall approve and conduct an annual inspection of Designated Delivery Storage Facilities. The details shall be prescribed separately by the Exchange.

Article 44 Where a Member conducts physical delivery, it shall make payments or submit delivery documents to the Exchange before the deadline prescribed by the Exchange.
If there is a difference between the delivered quantity and the futures position quantity within the prescribed tolerance level during the physical delivery, the payment for the difference shall be calculated by the means prescribed by the Exchange.

Article 45 A Member shall not refuse to fulfill delivery obligations under the contracts if any of its Clients, OSPs, Overseas Intermediaries or any other entities, who authorizes it to settle, is in default.

Article 46 Under physical delivery, it is deemed delivery default if the Member as seller fails to deliver standard warrants within the specified time period or deliver commodities which do not meet the prescribed requirements, or if the Member as buyer fails to make payment within the specified time period.

Article 47 Designated Delivery Storage Facilities shall bear the compensation liabilities if the holders of standard warrants are unable to fully or partially exercise the right of standard warrants due to the fault of Designated Delivery Storage Facilities.

The Exchange shall bear compensation liabilities in accordance with PRC laws and regulations, and relevant agreements.

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