Performance bond are the Funds that must put as a performance
bond by a purchaser or the customer with his or her
broker, by a broker with a clearing member or by a clearing
member, with the Clearing House. The performance bond
assists to create certain the financial integrity of
brokers, clearing members and the exchange as one. It
is a tool intended at ensuring a service or contract
finished appropriately. If this is not the case, then
the bank issuing or guaranteeing the bond will be necessary
to make a compensatory imbursement. In general, we can
say it is the Bond issued by a surety or insurance company
to promise performance under or in conjunction with
a contract or with an agreement in a form of bond.