Does the Clearinghouse Assume Custody Risk in a Physically-Settled Futures Contract?

Yes, the clearinghouse often assumes temporary custody risk during the settlement process. They typically take delivery of the underlying asset from the seller and then transfer it to the buyer.

However, for most of the contract's life, the clearinghouse manages credit risk, not custody risk, as the assets are held by the traders or their designated custodians. Their custody role is limited to the final delivery period.