Commodity Futures Trading Commission § 150.2

§§ 149.161–149.169 17 CFR Ch. I (4–1–20 Edition)

§§ 149.161–149.169 [Reserved] (h) Appeals of the findings of fact and conclusions of law or remedies must be § 149.170 Compliance procedures. filed by the complainant within 90 days (a) Except as provided in paragraph of receipt from the agency of the letter (b) of this section, this section applies required by § 149.170(g). The agency to all allegations of discrimination on may extend this time for good cause. the basis of handicap in programs or (i) Timely appeals shall be accepted activities conducted by the agency. and processed by the head of the agency. (b) The agency shall process com- (j) The head of the agency shall no- plaints alleging violations of section tify the complainant of the results of 504 with respect to employment accord- the appeal within 60 days of the receipt ing to the procedures established by of the request. If the head of the agen- the Equal Employment Opportunity cy determines that additional informa- Commission in 29 CFR part 1613 pursu- tion is needed from the complainant, ant to section 501 of the Rehabilitation he or she shall have 60 days from the Act of 1973 (29 U.S.C. 791). date of receipt of the additional infor- (c) The Executive Director of the mation to make his or her determina- Commission shall be responsible for co- tion on the appeal. ordinating implementation of this sec- (k) The time limits cited in para- tion. Complaints may be sent to the graphs (g) and (j) of this section may be Equal Employment Opportunity Offi- extended with the permission of the cer, Commodity Futures Trading Com- Assistant Attorney General. mission, Three Lafayette Centre, 1155 (l) The agency may delegate its au- 21st Street, NW., Washington, DC 20581. thority for conducting complaint in- (d) The agency shall accept and in- vestigations to other Federal agencies, vestigate all complete complaints for except that the authority for making which it has jurisdiction. All complete the final determination may not be complaints must be filed within 180 delegated to another agency. days of the alleged act of discrimination. The agency may extend this time [51 FR 22889, 22896, June 23, 1986, as amended period for good cause. at 51 FR 22889, June 23, 1986; 60 FR 49336, Sept. 25, 1995] (e) If the agency receives a complaint over which it does not have jurisdiction, it shall promptly notify the com- PART 150—LIMITS ON POSITIONS plainant and shall make reasonable ef- forts to refer the complaint to the ap- Sec. 150.1 Definitions. propriate government entity. 150.2 Position limits. (f) The agency shall notify the Archi- 150.3 Exemptions. tectural and Transportation Barriers 150.4 Aggregation of positions. Compliance Board upon receipt of any 150.5 Exchange-set speculative position lim- complaint alleging that a building or its. facility that is subject to the Architec- 150.6 Responsibility of contract markets. tural Barriers Act of 1968, as amended AUTHORITY: 7 U.S.C. 6a, 6c, and 12a(5). (42 U.S.C. 4151–4157), or section 502 of SOURCE: 52 FR 38923, Oct. 20, 1987, unless the Rehabilitation Act of 1973, as otherwise noted. amended (29 U.S.C. 792), is not readily accessible to and usable by handi- § 150.1 Definitions. capped persons. As used in this part— (g) Within 180 days of the receipt of a (a) Spot month means the futures con- complete complaint for which it has ju- tract next to expire during that period risdiction, the agency shall notify the of time beginning at the close of trad- complainant of the results of the inves- ing on the trading day preceding the tigation in a letter containing— first day on which delivery notices can (1) Findings of fact and conclusions be issued to the clearing organization of law; of a contract market. (2) A description of a remedy for each (b) Single month means each separate violation found; and futures trading month, other than the (3) A notice of the right to appeal. spot month future.

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(c) All-months means the sum of all which may be incumbent upon the eli- futures trading months including the gible entity to fulfill; spot month future. (3) Who trades independently of the (d) Eligible entity means a commodity eligible entity and of any other inde- pool operator; the operator of a trading pendent account controller trading for vehicle which is excluded, or which the eligible entity; itself has qualified for exclusion from (4) Who has no knowledge of trading the definition of the term ‘‘pool’’ or decisions by any other independent ac- ‘‘commodity pool operator,’’ respec- count controller; and tively, under § 4.5 of this chapter; the (5) Who is: limited partner, limited member or (i) Registered as a futures commis- shareholder in a commodity pool the sion merchant, an introducing broker, operator of which is exempt from reg- a commodity trading advisor, or an as- istration under § 4.13 of this chapter; a sociated person of any such registrant, commodity trading advisor; a bank or or (ii) A general partner, managing trust company; a savings association; member or manager of a commodity an insurance company; or the sepa- pool the operator of which is excluded rately organized affiliates of any of the from registration under § 4.5(a)(4) of above entities: this chapter or § 4.13 of this chapter, (1) Which authorizes an independent provided that such general partner, account controller independently to managing member or manager com- control all trading decisions with re- plies with the requirements of § 150.4(c). spect to the eligible entity’s client po- (f) Futures-equivalent means an option sitions and accounts that the inde- contract which has been adjusted by pendent account controller holds di- the previous day’s risk factor, or delta rectly or indirectly, or on the eligible coefficient, for that option which has entity’s behalf, but without the eligible been calculated at the close of trading entity’s day-to-day direction; and and published by the applicable ex- (2) Which maintains: change under § 16.01 of this chapter. (i) Only such minimum control over (g) Long position means a long call the independent account controller as option, a short put option or a long un- is consistent with its fiduciary respon- derlying futures contract. sibilities to the managed positions and (h) Short position means a short call accounts, and necessary to fulfill its option, a long put option or a short un- duty to supervise diligently the trading derlying futures contract. done on its behalf; or (i) For the following commodities, (ii) If a limited partner, limited the first delivery month of the ‘‘crop member or shareholder of a commodity year’’ is as follows: pool the operator of which is exempt from registration under § 4.13 of this Commodity Beginning delivery month chapter, only such limited control as is corn ...... December. consistent with its status. cotton ...... October. (e) Independent account controller oats ...... July. means a person— soybeans ...... September. (1) Who specifically is authorized by soybean meal ...... October. soybean oil ...... October. an eligible entity, as defined in para- wheat (spring) ...... September. graph (d) of this section, independently wheat (winter) ...... July. to control trading decisions on behalf of, but without the day-to-day direc- [52 FR 38923, Oct. 20, 1987, as amended at 53 tion of, the eligible entity; FR 41571, Oct. 24, 1988; 56 FR 14315, Apr. 9, (2) Over whose trading the eligible 1991; 57 FR 44492, Sept. 28, 1992; 58 FR 17981, entity maintains only such minimum Apr. 7, 1993; 64 FR 24046, May 5, 1999; 81 FR control as is consistent with its fidu- 91489, Dec. 16, 2016] ciary responsibilities for managed positions and accounts to fulfill its duty to § 150.2 Position limits. supervise diligently the trading done No person may hold or control posi- on its behalf or as is consistent with tions, separately or in combination, such other legal rights or obligations net long or net short, for the purchase

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or sale of a commodity for future deliv- options thereon, in excess of the fol- ery or, on a futures-equivalent basis, lowing:

SPECULATIVE POSITION LIMITS

Limits by number of contracts Single Contract Spot month month All months

Chicago Board of Trade

Corn and Mini-Corn 1 ...... 600 33,000 33,000 Oats ...... 600 2,000 2,000 Soybeans and Mini-Soybeans 1 ...... 600 15,000 15,000 Wheat and Mini-Wheat 1 ...... 600 12,000 12,000 Soybean Oil ...... 540 8,000 8,000 Soybean Meal ...... 720 6,500 6,500

Minneapolis Grain Exchange

Hard Red Spring Wheat ...... 600 12,000 12,000

ICE Futures U.S.

Cotton No. 2 ...... 300 5,000 5,000

Kansas City Board of Trade

Hard Winter Wheat ...... 600 12,000 12,000 1 For purposes of compliance with these limits, positions in the regular sized and mini-sized contracts shall be aggregated.

[76 FR 71684, Nov. 18, 2011] futures, options or cash market positions which support the claim of ex- § 150.3 Exemptions. emption; and the relevant business re- (a) Positions which may exceed lim- lationships supporting a claim of ex- its. The position limits set forth in emption. § 150.2 of this part may be exceeded to the extent such position are: [53 FR 41571, Oct. 24, 1988, as amended at 56 (1) Bona fide hedging transactions as FR 14315, Apr. 9, 1991; 57 FR 44492, Sept. 28, defined in § 1.3 of this chapter; 1992; 58 FR 17982, Apr. 7, 1993; 60 FR 38193, July 25, 1995; 67 FR 62353, Oct. 7, 2002; 81 FR (2) [Reserved] 91489, Dec. 16, 2016; 82 FR 28770, June 26, 2017; (3) Spread or arbitrage positions be- 83 FR 7997, Feb. 23, 2018] tween single months of a futures contract and/or, on a futures-equivalent § 150.4 Aggregation of positions. basis, options thereon, outside of the spot month, in the same crop year; pro- (a) Positions to be aggregated—(1) vided however, That such spread or ar- Trading control or 10 percent or greater bitrage positions, when combined with ownership or equity interest. For the pur- any other net positions in the single pose of applying the position limits set month, do not exceed the all-months forth in § 150.2, unless an exemption set limit set forth in § 150.2. forth in paragraph (b) of this section (b) Call for information. Upon call by applies, all positions in accounts for the Commission or the Director of the which any person, by power of attorney Division of Enforcement, or such other or otherwise, directly or indirectly employee or employees as the Director controls trading or holds a 10 percent may designate from time to time, any or greater ownership or equity interest person claiming an exemption from must be aggregated with the positions speculative position limits under this held and trading done by such person. section must provide to the Commis- For the purpose of determining the po- sion or the Division of Enforcement sitions in accounts for which any per- such information as specified in the son controls trading or holds a 10 per- call relating to the positions owned or cent or greater ownership or equity in- controlled by that person; trading done terest, positions or ownership or equity pursuant to the claimed exemption; the interests held by, and trading done or

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controlled by, two or more persons act- about the trading or positions of the ing pursuant to an expressed or implied pool; agreement or understanding shall be (B) The person does not have direct, treated the same as if the positions or day-to-day supervisory authority or ownership or equity interests were held control over the pool’s trading deci- by, or the trading were done or con- sions; trolled by, a single person. (C) The person, if a principal of the (2) Substantially identical trading. Not- operator of the pooled account, main- withstanding the provisions of para- tains only such minimum control over graph (b) of this section, for the pur- the commodity pool operator as is con- pose of applying the position limits set sistent with its responsibilities as a forth in § 150.2, any person that, by principal and necessary to fulfill its power of attorney or otherwise, holds duty to supervise the trading activities or controls the trading of positions in of the commodity pool; and more than one account or pool with (D) The pool operator has complied substantially identical trading strate- with the requirements of paragraph (c) gies, must aggregate all such positions of this section on behalf of the person (determined pro rata) with all other po- or class of persons; or sitions held and trading done by such (iii) Has, by power of attorney or oth- person and the positions in accounts erwise directly or indirectly, a 25 per- which the person must aggregate pur- cent or greater ownership or equity in- suant to paragraph (a)(1) of this sec- terest in a commodity pool, the oper- tion. ator of which is exempt from registra- (b) Exemptions from aggregation. For tion under § 4.13 of this chapter. the purpose of applying the position (2) Exemption for certain ownership of limits set forth in § 150.2, and notwith- greater than 10 percent in an owned enti- standing the provisions of paragraph ty. Any person with an ownership or eq- (a)(1) of this section, but subject to the uity interest in an owned entity of 10 provisions of paragraph (a)(2) of this percent or greater (other than an inter- section, the aggregation requirements est in a pooled account subject to para- of this section shall not apply in the graph (b)(1) of this section), need not circumstances set forth in this para- aggregate the accounts or positions of graph (b). the owned entity with any other ac- (1) Exemption for ownership by limited counts or positions such person is re- partners, shareholders or other pool par- quired to aggregate, provided that: ticipants. Any person that is a limited (i) Such person, including any entity partner, limited member, shareholder that such person must aggregate, and or other similar type of pool partici- the owned entity (to the extent that pant holding positions in which the such person is aware or should be person by power of attorney or other- aware of the activities and practices of wise directly or indirectly has a 10 per- the aggregated entity or the owned en- cent or greater ownership or equity in- tity): terest in a pooled account or positions (A) Do not have knowledge of the need not aggregate the accounts or po- trading decisions of the other; sitions of the pool with any other ac- (B) Trade pursuant to separately de- counts or positions such person is re- veloped and independent trading sys- quired to aggregate, except that such tems; person must aggregate the pooled ac- (C) Have and enforce written proce- count or positions with all other ac- dures to preclude each from having counts or positions owned or controlled knowledge of, gaining access to, or re- by such person if such person: ceiving data about, trades of the other. (i) Is the commodity pool operator of Such procedures must include security the pooled account; arrangements, including separate phys- (ii) Is a principal or affiliate of the ical locations, which would maintain operator of the pooled account, unless: the independence of their activities; (A) The pool operator has, and en- (D) Do not share employees that con- forces, written procedures to preclude trol the trading decisions of either; and the person from having knowledge of, (E) Do not have risk management gaining access to, or receiving data systems that permit the sharing of its

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trades or its trading strategy with em- independent account controller, each ployees that control the trading deci- of the affiliated entities must: sions of the other; and (A) Have, and enforce, written proce- (ii) Such person complies with the re- dures to preclude the affiliated entities quirements of paragraph (c) of this sec- from having knowledge of, gaining ac- tion. cess to, or receiving data about, trades (3) Exemption for accounts held by fu- of the other. Such procedures must in- tures commission merchants. A futures clude security arrangements, including commission merchant or any affiliate separate physical locations, which of a futures commission merchant need would maintain the independence of not aggregate positions it holds in a their activities; provided, however, discretionary account, or in an account that such procedures may provide for which is part of, or participates in, or the disclosure of information which is receives trading advice from a cus- reasonably necessary for an eligible en- tomer trading program of a futures tity to maintain the level of control commission merchant or any of the of- consistent with its fiduciary respon- ficers, partners, or employees of such sibilities to the managed positions and futures commission merchant or of its accounts and necessary to fulfill its affiliates, if: duty to supervise diligently the trading (i) A person other than the futures done on its behalf; commission merchant or the affiliate (B) Trade such accounts pursuant to directs trading in such an account; separately developed and independent (ii) The futures commission mer- trading systems; chant or the affiliate maintains only (C) Market such trading systems sep- such minimum control over the trading arately; and in such an account as is necessary to fulfill its duty to supervise diligently (D) Solicit funds for such trading by trading in the account; separate disclosure documents that (iii) Each trading decision of the dis- meet the standards of § 4.24 or § 4.34 of cretionary account or the customer this chapter, as applicable, where such trading program is determined inde- disclosure documents are required pendently of all trading decisions in under part 4 of this chapter. other accounts which the futures com- (ii) [Reserved] mission merchant or the affiliate (5) Exemption for underwriting. A per- holds, has a financial interest of 10 person need not aggregate the positions or cent or more in, or controls; and accounts of an owned entity if the own- (iv) The futures commission mer- ership or equity interest is based on chant or the affiliate has complied the ownership of securities consti- with the requirements of paragraph (c) tuting the whole or a part of an unsold of this section. allotment to or subscription by such (4) Exemption for accounts carried by person as a participant in the distribu- an independent account controller. An el- tion of such securities by the issuer or igible entity need not aggregate its po- by or through an underwriter. sitions with the eligible entity’s client (6) Exemption for broker-dealer activity. positions or accounts carried by an au- A broker-dealer registered with the Se- thorized independent account con- curities and Exchange Commission, or troller, as defined in § 150.1(e), except similarly registered with a foreign reg- for the spot month in physical-delivery ulatory authority, need not aggregate commodity contracts, provided that the positions or accounts of an owned the eligible entity has complied with entity if the ownership or equity inter- the requirements of paragraph (c) of est is based on the ownership of securi- this section, and that the overall posi- ties acquired in the normal course of tions held or controlled by such inde- business as a dealer, provided that such pendent account controller may not ex- person does not have actual knowledge ceed the limits specified in § 150.2. of the trading decisions of the owned (i) Additional requirements for exemp- entity. tion of affiliated entities. If the inde- (7) Exemption for information sharing pendent account controller is affiliated restriction. A person need not aggregate with the eligible entity or another the positions or accounts of an owned

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entity if the sharing of information as- or position identified in such notice fil- sociated with such aggregation (such ing. as, only by way of example, informa- (iv) Upon call by the Commission, tion reflecting the transactions and po- any person relying on the exemption in sitions of a such person and the owned this paragraph (b)(8) shall provide to entity) creates a reasonable risk that the Commission such information con- either person could violate state or fed- cerning the person’s claim for exemp- eral law or the law of a foreign juris- tion. Upon notice and opportunity for diction, or regulations adopted there- the affected person to respond, the under, provided that such person does Commission may amend, suspend, ter- not have actual knowledge of informa- minate, or otherwise modify a person’s tion associated with such aggregation, aggregation exemption for failure to and provided further that such person comply with the provisions of this sec- has filed a prior notice pursuant to tion. paragraph (c) of this section and in- (c) Notice filing for exemption. (1) Per- cluded with such notice a written sons seeking an aggregation exemption memorandum of law explaining in de- under paragraph (b)(1)(ii), (b)(2), (b)(3), tail the basis for the conclusion that (b)(4), or (b)(7) of this section shall file the sharing of information creates a a notice with the Commission, which reasonable risk that either person shall be effective upon submission of could violate state or federal law or the the notice (or earlier, as provided in law of a foreign jurisdiction, or regula- paragraph (c)(2) of this section), and tions adopted thereunder. However, the shall include: exemption in this paragraph shall not (i) A description of the relevant cir- apply where the law or regulation cumstances that warrant serves as a means to evade the aggrega- disaggregation; and tion of accounts or positions. All docu- (ii) A statement of a senior officer of ments submitted pursuant to this para- the entity certifying that the condi- graph shall be in English, or if not, ac- tions set forth in the applicable aggre- companied by an official English trans- gation exemption provision have been lation. met. (8) Exemption for affiliated entities. (2) If a person newly acquires an own- After a person has filed a notice under ership or equity interest in an owned paragraph (c) of this section, another entity of 10 percent or greater and is person need not file a separate notice eligible for the aggregation exemption identifying any position or account under paragraph (b)(2) of this section, identified in such notice filing, pro- the person may elect that a notice filed vided that: under this paragraph (c) shall be effec- (i) Such other person has an owner- tive as of the date of such acquisition ship or equity interest of 10 percent or if such notice is filed no later than 60 greater in the person that filed the no- days after such acquisition. tice, or the person that filed the notice (3) Upon call by the Commission, any has an ownership or equity interest of person claiming an aggregation exemp- 10 percent or greater in such other per- tion under this section shall provide son, or an ownership or equity interest such information demonstrating that of 10 percent or greater is held in such the person meets the requirements of other person by a third person who the exemption, as is requested by the holds an ownership or equity interest Commission. Upon notice and oppor- of 10 percent or greater in the person tunity for the affected person to re- that has filed the notice (in any such spond, the Commission may amend, case, the ownership or equity interest suspend, terminate, or otherwise mod- may be held directly or indirectly); ify a person’s aggregation exemption (ii) Such other person complies with for failure to comply with the provi- the conditions applicable to the exemp- sions of this section. tion specified in such notice filing, (4) In the event of a material change other than the filing requirements; and to the information provided in any no- (iii) Such other person does not oth- tice filed under this paragraph (c), an erwise control trading of any account updated or amended notice shall

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promptly be filed detailing the mate- as the Directors each may designate rial change. from time to time, the authority in (5) Any notice filed under this para- paragraph (d) of this section to provide graph (c) shall be submitted in the instructions or determine the format, form and manner provided for in para- coding structure, and electronic data graph (d) of this section. transmission procedures for submitting (6) If a person is eligible for an aggre- data records and any other information gation exemption under paragraph required under this part. (b)(1)(ii), (b)(2), (b)(3), (b)(4), or (b)(7) of (3) The Directors of the Division of this section, a failure to timely file a Enforcement and the Office of Data and notice under this paragraph (c) shall Technology may submit to the Com- not constitute a violation of paragraph mission for its consideration any mat- (a)(1) of this section or any position ter which has been delegated in this limit set forth in § 150.2 if such notice is section. filed no later than five business days (4) Nothing in this section prohibits after the person is aware, or should be the Commission, at its election, from aware, that such notice has not been exercising the authority delegated in timely filed. this section. (d) Form and manner of reporting and [81 FR 91490, Dec. 16, 2016, as amended at 82 submitting information or filings. Unless FR 28770, June 26, 2017] otherwise instructed by the Commis- sion or its designees, any person sub- § 150.5 Exchange-set speculative posi- mitting reports under this section shall tion limits. submit the corresponding required fil- (a) Exchange limits. Each contract ings and any other information re- market as a condition of designation quired under this part to the Commis- under part 5, appendix A, of this chap- sion using the format, coding struc- ter shall be bylaw, rule, regulation, or ture, and electronic data transmission resolution limit the maximum number procedures approved in writing by the of contracts a person may hold or con- Commission. Unless otherwise provided trol, separately or in combination, net in this section, the notice shall be ef- long or net short, for the purchase or fective upon filing. When the reporting sale of a commodity for future delivery entity discovers errors or omissions to or, on a futures-equivalent basis, op- past reports, the entity shall so notify tions thereon. This section shall not the Commission and file corrected in- apply to a contract market for which formation in a form and manner and at position limits are set forth in § 150.2 of a time as may be instructed by the this part or for a futures or option con- Commission or its designee. tract market on a major foreign cur- (e) Delegation of authority. (1) The rency, for which there is no legal im- Commission hereby delegates, until it pediment to delivery and for which orders otherwise, to the Director of the there exists a highly liquid cash mar- Division of Enforcement, or such other ket. Nothing in this section shall be employee or employees as the Director construed to prohibit a contract mar- may designate from time to time, the ket from fixing different and separate authority: position limits for different types of fu- (i) In paragraph (b)(8)(iv) of this sec- tures contracts based on the same com- tion to call for additional information modity, or from fixing different posi- from a person claiming the exemption tion limits for different futures or for in paragraph (b)(8) of this section. different delivery months, or from ex- (ii) In paragraph (c)(3) of this section empting positions which are normally to call for additional information from known in the trade as ‘‘spreads, strad- a person claiming an aggregation ex- dles, or arbitrage,’’ of from fixing lim- emption under this section. its which apply to such positions which (2) The Commission hereby delegates, are different from limits fixed for other until it orders otherwise, to the Direc- positions. tor of the Office of Data and Tech- (b) Levels at designation. At the time nology, with the concurrence of the Di- of its initial designation, a contract rector of the Division of Enforcement, market must provide for speculative or such other employee or employees position limit levels as follows:

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(1) For physical delivery contracts, fide hedging transactions and positions the spot month limit level must be no for excluded commodities in § 1.3 of this greater than one-quarter of the esti- chapter. Provided, however, that the mated spot month deliverable supply, contract market may limit bona fide calculated separately for each month hedging positions or any other posi- to be listed, and for cash settled con- tions which have been exempted pursu- tracts, the spot month limit level must ant to paragraph (e) of this section be no greater than necessary to mini- which it determines are not in accord mize the potential for manipulation or with sound commercial practices or ex- distortion of the contract’s or the un- ceed an amount which may be estab- derlying commodity’s price; lished and liquidated in orderly fash- (2) Individual nonspot or all-months- ion. combined levels must be no greater (2) Traders must apply to the con- than 1,000 contracts for tangible com- tract market for exemption from its modities other than energy products; speculative position limit rules. In con- (3) Individual nonspot or all-months- sidering whether to grant such an ap- combined levels must be no greater plication for exemption, contract mar- than 5,000 contracts for energy prod- kets must take into account the fac- ucts and nontangible commodities, in- tors contained in paragraph (d)(1) of cluding contracts on financial prod- this section. ucts. (e) Trader accountability exemption. (c) Adjustments to levels. Contract Twelve months after a contract mar- markets may adjust their speculative ket’s initial listing for trading or at limit levels as follows: any time thereafter, contract markets (1) For physical delivery contracts, may submit for Commission approval the spot month limit level must be no under section 5a(a)(12) of the Act and greater than one-quarter of the esti- § 1.41(b) of this chapter a bylaw, rule, mated spot month deliverable supply, regulation, or resolution, substituting calculated separately for each month for the position limits required under to be listed, and for cash settled con- paragraphs (a), (b) and (c) of this sec- tracts, the spot month limit level must tion an exchange rule requiring traders be no greater than necessary to mini- to be accountable for large positions as mize the potential for manipulation or follows: distortion of the contract’s or the un- (1) For futures and option contracts derlying commodity’s price; and on a financial instrument or product (2) Individual nonspot or all-months- having an average open interest of combined levels must be no greater 50,000 contracts and an average daily than 10% of the average combined fu- trading volume of 100,000 contracts and tures and delta-adjusted option month- a very highly liquid cash market, an end open interest for the most recent exchange bylaw, regulation or resolu- calendar year up to 25,000 contracts tion requiring traders to provide infor- with a marginal increase of 2.5% there- mation about their position upon re- after or be based on position sizes cus- quest by the exchange; tomarily held by speculative traders on (2) For futures and option contracts the contract market, which shall not on a financial instrument or product or be extraordinarily large relative to on an intangible commodity having an total open positions in the contract, average moth-end open interest of the breadth and liquidity of the cash 50,000 and an average daily volume of market underlying each delivery 25,000 contracts and a highly liquid month and the opportunity for arbi- cash market, an exchange bylaw, regu- trage between the futures market and lation or resolution requiring traders the cash market in the commodity un- to provide information about their po- derlying the futures contract. sition upon request by the exchange (d) Hedge exemption. (1) No exchange and to consent to halt increasing fur- bylaw, rule, regulation, or resolution ther a trader’s positions if so ordered adopted pursuant to this section shall by the exchange; apply to bona fide hedging positions as (3) For futures and option contracts defined by a contract market in ac- on a tangible commodity, including but cordance with the definition of bona not limited to metals, energy products,

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or international soft agricultural prod- ment or understanding, the same as if ucts, having an average month-end the positions were held by a single per- open interest of 50,000 contracts and an son. average daily volume of 5,000 contracts [64 FR 24048, May 5, 1999, as amended at 83 and a liquid cash market, an exchange FR 7997, Feb. 23, 2018] bylaw, regulation or resolution requiring traders to provide information § 150.6 Responsibility of contract mar- about their position upon request by kets. the exchange and to consent to halt in- Nothing in this part shall be con- creasing further a trader’s positions if strued to affect any provisions of the so ordered by the exchange, provided, Act relating to manipulation or cor- however, such contract markets are not ners nor to relieve any contract mar- exempt from the requirement of para- ket or its governing board from respon- graphs (b) or (c) that they adopt an ex- sibility under section 5(4) of the Act to change bylaw, regulation or resolution prevent manipulation and corners. setting a spot month speculative position limit with a level no grater than [52 FR 38923, Oct. 20, 1987, as amended at 59 one quarter of the estimated spot FR 5528, Feb. 7, 1993] month deliverable supply; (4) For purposes of this paragraph, PART 151—POSITION LIMITS FOR trading volume and open interest shall FUTURES AND SWAPS be calculated by combining the month- end futures and its related option con- Sec. tract, on a delta-adjusted basis, for all 151.1 Definitions. months listed during the most recent 151.2 Core Referenced Futures Contracts. calendar year. 151.3 Spot months for Referenced Contracts. (f) Other exemptions. Exchange specu- 151.4 Position limits for Referenced Con- lative position limits adopted pursuant tracts. to this section shall not apply to any 151.5 Bona fide hedging and other exemp- position acquired in good faith prior to tions for Referenced Contracts. the effective date of any bylaw, rule, 151.6 Position visibility. regulation, or resolution which speci- 151.7 Aggregation of positions. fies such limit or to a person that is 151.8 Foreign boards of trade. 151.9 Pre-existing positions. registered as a futures commission 151.10 Form and manner of reporting and merchant or as a floor broker under au- submitting information or filings. thority of the Act except to the extent 151.11 Designated contract market and swap that transactions made by such person execution facility position limits and ac- are made on behalf of or for the accountability rules. count or benefit of such person. In ad- 151.12 Delegation of authority to the Direc- dition to the express exemptions speci- tor of the Division of Market Oversight. fied in this section, a contract market 151.13 Severability. may propose such other exemptions APPENDIX A TO PART 151—SPOT-MONTH POSI- from the requirements of this section TION LIMITS consistent with the purposes of this APPENDIX B TO PART 151—EXAMPLES OF BONA section and shall submit such rules FIDE HEDGING TRANSACTIONS AND POSI- Commission review under section TIONS 5a(1)(12) of the Act and § 1.41(b) of this AUTHORITY: 7 U.S.C. 1a, 2, 5, 6, 6a, 6c, 6f, 6g, chapter. 6t, 12a, 19, as amended by Title VII of the (g) Aggregation. In determining Dodd-Frank Wall Street Reform and Con- whether any person has exceeded the sumer Protection Act, Pub. L. 111–203, 124 Stat. 1376 (2010). limits established under this section, all positions in accounts for which such SOURCE: 76 FR 71684, Nov. 18, 2011, unless person by power of attorney or other- otherwise noted. wise directly or indirectly controls trading shall be included with the posi- § 151.1 Definitions. tions held by such person; such limits As used in this part— upon positions shall apply to positions Basis contract means an agreement, held by two or more person acting pur- contract or transaction that is cash- suant to an express or implied agree- settled based on the difference in price

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