Lets be clear here, no one is talking about Comex ACTUALLY defaulting. This is a hypothetical, based on WRCMAD's earlier responses.
The bottom line is, and I think we can all agree on this, that COMEX is a highly regulated exchange with check and measures in place to mitigate risk as much as possible.
However.... according to WRCMAD, and I agree, Comex CAN enforce a delivery via cash, if required, BUT it wouldnt look good if they did.
As for liability in the event of default, the members enter into a contract with the exchange, and it is the exchange that ultimately wears that risk, hence their requirement to members to lodge a sum of money into a guarantee fund, to pay for defaults should they occur.
This is exactly the same as any other clearing house or partner around the world.
