17 CFR 38.252 – Additional requirements for physical-delivery contracts
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For physical-delivery contracts, the designated contract market must demonstrate that it:
Terms Used In 17 CFR 38.252
- Contract: A legal written agreement that becomes binding when signed.
(a) Monitors a contract’s terms and conditions as they relate to the underlying commodity market and to the convergence between the contract price and the price of the underlying commodity and show a good-faith effort to resolve conditions that are interfering with convergence; and
(b) Monitors the supply of the commodity and its adequacy to satisfy the delivery requirements and make a good-faith effort to resolve conditions that threaten the adequacy of supplies or the delivery process.