§ 6a. Excessive speculation

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1922

   Sept. 21, 1922, ch. 369, § 4a, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1492 · 49 Stat. 1492

   Enacted · 7 U.S.C. § 6a

   Sept. 21, 1922, ch. 369, § 4a, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1492

   Source evidence

   Code source credit
   Sept. 21, 1922, ch. 369, § 4a, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1492

2. 1956

   Public Law not identified

   Added · 7 U.S.C. § 6a(3)(C)

   Par. (3)(C). Act July 24, 1956, added subpar. (C)

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Par. (3)(C). Act July 24, 1956, added subpar. (C).

3. 1968

   Pub. L. 90–258 § 2 · 82 Stat. 26

   1. Substituted · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, substituted in second sentence “amounts of trading” for “amount of trading”

   2. Inserted · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, inserted “which may be done or positions which may be held by any person” before “under contracts of sale”

   3. Struck · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, struck out “which may be done” after “rules of any contract market”

   4. Inserted · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, inserted third sentence providing for inclusion of controlled positions and trading in determining whether prescribed position or trading limits have been exceeded and for application of such position and trading limits to activities of two or more persons acting pursuant to agreement or understanding as if the activities of a single person, and included in fourth, formerly third, sentence references to position limits and to positions

   5. Substituted · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, substituted “normally” for “commonly”

   6. Struck · 7 U.S.C. § 6a(1)

      Pub. L. 90–258, § 2, struck out “trading” from “from fixing trading limits” and “from trading limits”

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 90–258, § 2, substituted in second sentence “amounts of trading” for “amount of trading”, inserted “which may be done or positions which may be held by any person” before “under contracts of sale”, and struck out “which may be done” after “rules of any contract market”, inserted third sentence providing for inclusion of controlled positions and trading in determining whether prescribed position or trading limits have been exceeded and for application of such position and trading limits to activities of two or more persons acting pursuant to agreement or understanding as if the activities of a single person, and included in fourth, formerly third, sentence references to position limits and to positions, substituted “normally” for “commonly”, and struck out “trading” from “from fixing trading limits” and “from trading limits”.

   Enacted provision · exact public law section
   Sec. 2. Section 4a (1) of the Commodity Exchange Act, as amended (7 U.S.C. 6a(l)), is amended by deleting the second and third sentences thereof and substituting the following: “For the purpose of diminishing, eliminating, or preventing such burden, the commission shall, from time to time, after due notice and opportunity for hearing, by order, proclaim and fix such limits on the amounts of trading which may be done or positions which may be. held by any person under contracts of sale of such commodity for future delivery on or subject to the rules of any contract market as the commission finds are necessary to diminish, eliminate, or prevent such burden. In determining whether any person has exceeded such limits, the positions held and trading done by any persons directly or indirectly controlled by such person shall be included with the positions held and trading done by such person; and further, such limits upon positions and trading shall apply to positions held by, and trading done by, two or more persons acting pursuant to an expressed or implied agreement or understanding, the same as if the positions were held by, or the trading were done by, a single person. Nothing in this section shall be construed to prohibit the commission from fixing different trading or position limits for different commodities, markets, futures, or delivery months, or different trading limits for buying and selling operations, or different limits for the purposes of subparagraphs 2 (A) and (B) of this section, or from exempting transactions normally known to the trade as ‘spreads’ or ‘straddles’ or from fixing limits applying to such transactions or positions different from limits fixed for other transactions or positions.”

4. 1968

   Pub. L. 90–258 § 3 · 82 Stat. 26

   Substituted · 7 U.S.C. § 6a(2)(B)

   Pub. L. 90–258, § 3, substituted prohibition against holding of net long or net short positions in excess of any position limit fixed by the Commission for former prohibition of purchases or sales which result in net long or net short positions in excess of trading limits fixed by the Commission and provided that the position limit shall not apply to a position acquired in good faith prior to the effective date of the order

   Source evidence

   Code amendment note
   Par. (2)(B). Pub. L. 90–258, § 3, substituted prohibition against holding of net long or net short positions in excess of any position limit fixed by the Commission for former prohibition of purchases or sales which result in net long or net short positions in excess of trading limits fixed by the Commission and provided that the position limit shall not apply to a position acquired in good faith prior to the effective date of the order.

   Enacted provision · exact public law section
   Sec. 3. Section 4u(2)(B) of the Commodity Exchange Act, as amended (7 U.S.C. 6a(2)(B)), is amended to read as follows: Net long or short position. “(B) directly or indirectly to hold or control a net long or a net short, position in any commodity for future delivery on or subject to the rules of any contract market in excess of any position limit fixed by the commission for or with respect to such commodity: Provided, That such position limit shall not apply to a position acquired in good faith prior to the effective date of such order.”

5. 1968

   Pub. L. 90–258 § 4 · 82 Stat. 26

   Substituted · 7 U.S.C. § 6a(3)

   Pub. L. 90–258, § 4, included references to positions, made hedging applicable to short and long positions, substituted “contract market” for “board of trade”, and required the activities to be those of the same person to constitute hedging

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 90–258, § 4, included references to positions, made hedging applicable to short and long positions, substituted “contract market” for “board of trade”, and required the activities to be those of the same person to constitute hedging.

   Enacted provision · exact public law section
   Sec. 4. Section 4a (3) of the Commodity Exchange Act, as amended Hedging transactions. 49 Stat. 1493. (7 U.S.C. 6a(3)), is amended by deleting the first two sentences thereof and substituting the following: “No order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions. For the purposes of determining the bona fide hedging transactions or positions of any person under this paragraph (3), they shall mean sales of, or short positions in, any commodity for future delivery on or subject to the rules of any contract market made or held by such person to the extent that such sales or short positions are offset in quantity by the ownership or purchase of the same cash commodity by tire same person or, conversely, purchases of, or long positions in, any commodity for future delivery on or subject to the rules of any contract market made or held by such person to the extent, that such purchases or long positions are offset by sales of the same cash commodity by the same person.”

6. 1974

   Commodity Futures Trading Commission Act of 1974

   Pub. L. 93–463 § 403 · 88 Stat. 1389

   1. Inserted · 7 U.S.C. § 6a(1)

      Pub. L. 93–463, § 403, inserted “or ‘arbitrage’ ” after “or ‘straddles’ ”

   2. Inserted · 7 U.S.C. § 6a(1)

      Pub. L. 93–463, § 403, inserted definition of “arbitrage”, and authorized Commission to define “international arbitrage”

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 93–463, § 403, inserted “or ‘arbitrage’ ” after “or ‘straddles’ ”, inserted definition of “arbitrage”, and authorized Commission to define “international arbitrage”.

   Enacted provision · exact public law section
   Sec. 403. Section 4a(1) of the Commodity Exchange Act, as “Arbitrage.” amended (7 U.S.C. 6a), is amended by inserting, following the word “straddles” in the last sentence of such paragraph the words “or ‘arbitrage’” and by adding the following new sentences at the end of such paragraph: “The word ‘arbitrage’ in domestic markets shall be defined to mean the same as a ‘spread’ or ‘straddle’. The Commission is authorized to define the term ‘international arbitrage’.”

7. 1974

   Commodity Futures Trading Commission Act of 1974

   Pub. L. 93–463 § 404 · 88 Stat. 1389

   Struck · 7 U.S.C. § 6a(3)

   Pub. L. 93–463, § 404, directed Commission to define “bona fide hedging transactions or positions” within 90 days after the effective date of the Commodity Futures Trading Commission Act of 1974 and struck out provisions which enumerated the factors to be taken into account in determining whether a hedging transaction or position was a bona fide transaction or position

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 93–463, § 404, directed Commission to define “bona fide hedging transactions or positions” within 90 days after the effective date of the Commodity Futures Trading Commission Act of 1974 and struck out provisions which enumerated the factors to be taken into account in determining whether a hedging transaction or position was a bona fide transaction or position.

   Enacted provision · exact public law section
   Sec. 404. Section 4a (3) of the Commodity Exchange Act, as Hedging transactions. amended (7 U.S.C. 6a), is amended by deleting the period at the end of the first sentence and adding “as such terms shall be defined by the Commission within ninety days after the effective date of the Commodity Futures Trading Commission Act of 1974 by order consistent with the purposes of this Act.”; and by deleting, effective immediately on enactment of this Act, the remainder of paragraph (3): Provided, That notwithstanding any other provision of law, the Regulations. Secretary of Agriculture, immediately upon the enactment of the Commodity Futures Trading Commission Act of 1974, is authorized and directed to promulgate regulations defining bona fide hedging transactions and positions: And provided further, That until the Secretary issues such regulations defining bona fide hedging transactions and positions and such regulations are in full force and effect, such terms shall continue to be defined as set forth in the Commodity Exchange Act prior to its amendment by the Commodity Futures 7 USC 1. Trading Commission Act of 1974.

8. 1975

   Pub. L. 94–16 § 4 · 89 Stat. 77

   Substituted · 7 U.S.C. § 6a(3)

   Pub. L. 94–16 substituted “one hundred and eighty days” for “ninety days”

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 94–16 substituted “one hundred and eighty days” for “ninety days”.

   Enacted provision · exact public law section
   Sec. 4. Section 404 of the Commodity Futures Trading Commission 7 USC 6a. Act of 1974 is amended by striking the phrase “ninety days” wherever it appears therein and substituting therefor the phrase “one hundred and eighty days”.

9. 1983

   Futures Trading Act of 1982

   Pub. L. 97–444 § 205(1) · 96 Stat. 2294

   1. Substituted · 7 U.S.C. § 6a(1)

      Pub. L. 97–444, § 205(1), (2), substituted “by rule, regulation, or order, proclaim” for “by order, proclaim”

   2. Inserted · 7 U.S.C. § 6a(1)

      Pub. L. 97–444, § 205(1), (2), inserted “or for different number of days remaining until the last day of trading in a contract,” after “delivery months”

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 97–444, § 205(1), (2), substituted “by rule, regulation, or order, proclaim” for “by order, proclaim” and inserted “or for different number of days remaining until the last day of trading in a contract,” after “delivery months”.

   Enacted provision · exact public law section
   (1) inserting “rule, regulation, or” before “order” wherever it occurs in subsections (1) and (2);

10. 1983

    Futures Trading Act of 1982

    Pub. L. 97–444 § 205(1) · 96 Stat. 2294

    1. Substituted · 7 U.S.C. § 6a(2)

       Pub. L. 97–444, § 205(1), (3), substituted “after the promulgation of the rule, regulation, or order” for “after the order’s promulgation” in provisions before subpar. (A)

    2. Substituted · 7 U.S.C. § 6a(2)

       Pub. L. 97–444, § 205(1), (3), substituted “rule, regulation, or order” for “order” in provisions before subpar. (A) and in subpars. (A) and (B)

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 97–444, § 205(1), (3), substituted “after the promulgation of the rule, regulation, or order” for “after the order’s promulgation” in provisions before subpar. (A) and substituted “rule, regulation, or order” for “order” in provisions before subpar. (A) and in subpars. (A) and (B).

    Enacted provision · exact public law section
    (1) inserting “rule, regulation, or” before “order” wherever it occurs in subsections (1) and (2);

11. 1983

    Futures Trading Act of 1982

    Pub. L. 97–444 § 205(4) · 96 Stat. 2294

    1. Substituted · 7 U.S.C. § 6a(3)

       Pub. L. 97–444, § 205(4), substituted “No rule, regulation, or order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission by rule, regulation, or order consistent with the purposes of this chapter” for “No order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission within one hundred and eighty days after the effective date of the Commodity Futures Trading Commission Act of 1974 by order consistent with the purposes of this chapter”

    2. Inserted · 7 U.S.C. § 6a(3)

       Pub. L. 97–444, § 205(4), inserted “Such terms may be defined to permit producers, purchasers, sellers, middlemen, and users of a commodity or a product derived therefrom to hedge their legitimate anticipated business needs for that period of time into the future for which an appropriate futures contract is open and available on an exchange. To determine the adequacy of this chapter and the powers of the Commission acting thereunder to prevent unwarranted price pressures by large hedgers, the Commission shall monitor and analyze the trading activities of the largest hedgers, as determined by the Commission, operating in the cattle, hog, or pork belly markets and shall report its findings and recommendations to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture in its annual reports for at least two years following January 11, 1983.”

    Source evidence

    Code amendment note
    Par. (3). Pub. L. 97–444, § 205(4), substituted “No rule, regulation, or order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission by rule, regulation, or order consistent with the purposes of this chapter” for “No order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission within one hundred and eighty days after the effective date of the Commodity Futures Trading Commission Act of 1974 by order consistent with the purposes of this chapter” and inserted “Such terms may be defined to permit producers, purchasers, sellers, middlemen, and users of a commodity or a product derived therefrom to hedge their legitimate anticipated business needs for that period of time into the future for which an appropriate futures contract is open and available on an exchange. To determine the adequacy of this chapter and the powers of the Commission acting thereunder to prevent unwarranted price pressures by large hedgers, the Commission shall monitor and analyze the trading activities of the largest hedgers, as determined by the Commission, operating in the cattle, hog, or pork belly markets and shall report its findings and recommendations to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture in its annual reports for at least two years following January 11, 1983.”

    Enacted provision · exact public law section
    (4) amending subsection (3) to read as follows: “(3) No rule, regulation, or order issued under subsection (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission by rule, regulation, or order consistent with the purposes of this Act. Such terms may be defined to permit producers, purchasers, sellers, middlemen, and users of a commodity or a product derived therefrom to hedge their legitimate anticipated business needs for that period of time into the future for which an appropriate futures contract is open and available on an exchange. To determine the adequacy of this Act and the powers of the Commission acting thereunder to prevent unwarranted price pressures by large hedgers, the Commission shall monitor and analyze the trading activities of the largest hedgers, as determined by the Commission, operating in the cattle, hog, or pork belly markets and shall report its findings and recommendations to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture in its annual reports for at least two years following the date of enactment of the Futures Trading Act of 1982.”;

12. 1983

    Futures Trading Act of 1982

    Pub. L. 97–444 § 205(5) · 96 Stat. 2294

    Substituted · 7 U.S.C. § 6a(4)

    Pub. L. 97–444, § 205(5), substituted “a futures commission merchant, an introducing broker, or a floor broker” for “a futures commission merchant or as floor broker”

    Source evidence

    Code amendment note
    Par. (4). Pub. L. 97–444, § 205(5), substituted “a futures commission merchant, an introducing broker, or a floor broker” for “a futures commission merchant or as floor broker”.

    Enacted provision · exact public law section
    (5) inserting in the first sentence of subsection (4) “, an introducing broker,” after “futures commission merchant”, and striking out “as floor broker” and inserting in lieu thereof “a floor broker”; and

13. 1983

    Futures Trading Act of 1982

    Pub. L. 97–444 § 205(6) · 96 Stat. 2294

    Added · 7 U.S.C. § 6a(5)

    Pub. L. 97–444, § 205(6), added par. (5)

    Source evidence

    Code amendment note
    Par. (5). Pub. L. 97–444, § 205(6), added par. (5).

    Enacted provision · exact public law section
    (6) adding at the end thereof the following new subsection: “(5) Nothing in this section shall prohibit or impair the adoption by any contract market or by any other board of trade licensed or designated by the Commission of any bylaw, rule, regulation, or resolution fixing limits on the amount of trading which may be done or positions which may be held by any person under contracts of sale of any commodity for future delivery traded on or subject to the rules of such contract market, or under options on such contracts or commodities traded on or subject to the rules of such contract market or such board of trade: Provided, That if the Commission shall have fixed limits under this section for any contract or under section 4c of this Act for any commodity option, then the limits fixed by the bylaws, rules, regulations, and resolutions adopted by such contract market or such board of trade shall not be higher than the limits fixed by the Commission. It shall be a violation of this Act for any person to violate any bylaw, rule, regulation, or resolution of any contract market or other board of trade licensed or designated by the Commission fixing limits on the amount of trading which may be done or positions which may be held by any person under contracts of sale of any commodity for future delivery or under options on such contracts or commodities, if such bylaw, rule, regulation, or resolution has been approved by the Commission: Provided, 7 USC 13. That the provisions of section 9(c) of this Act shall apply only to those who knowingly violate such limits.”.

14. 1992

    Futures Trading Practices Act of 1992

    Pub. L. 102–546 § 402(1)(A) · 106 Stat. 3590

    1. Redesignated · 7 U.S.C. § 6a(a)

       Pub. L. 102–546, § 402(1)(A), (2)(A), (C), redesignated par. (1) as subsec. (a)

    2. Substituted · 7 U.S.C. § 6a(a)

       Pub. L. 102–546, § 402(1)(A), (2)(A), (C), substituted “Commission” for “commission” wherever appearing except in last sentence

    3. Substituted · 7 U.S.C. § 6a(a)

       Pub. L. 102–546, § 402(1)(A), (2)(A), (C), substituted “paragraphs (1) and (2) of subsection (b) of this section” for “subparagraphs (A) and (B) of paragraph (2)”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 102–546, § 402(1)(A), (2)(A), (C), redesignated par. (1) as subsec. (a), substituted “Commission” for “commission” wherever appearing except in last sentence, and substituted “paragraphs (1) and (2) of subsection (b) of this section” for “subparagraphs (A) and (B) of paragraph (2)”.

    Enacted provision · exact public law section
    (A) section 4a (as amended by paragraph (2)) each place it appears, other than in subsection (d), as so redesignated;

15. 1992

    Futures Trading Practices Act of 1992

    Pub. L. 102–546 § 402(1)(A) · 106 Stat. 3590

    1. Redesignated · 7 U.S.C. § 6a(b)

       Pub. L. 102–546, § 402(1)(A), (2)(C), (D), redesignated par. (2) as subsec. (b) and subpars. (A) and (B) as pars. (1) and (2), respectively

    2. Substituted · 7 U.S.C. § 6a(b)

       Pub. L. 102–546, § 402(1)(A), (2)(C), (D), substituted “Commission” for “commission” wherever appearing

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 102–546, § 402(1)(A), (2)(C), (D), redesignated par. (2) as subsec. (b) and subpars. (A) and (B) as pars. (1) and (2), respectively, and substituted “Commission” for “commission” wherever appearing.

    Enacted provision · exact public law section
    (A) section 4a (as amended by paragraph (2)) each place it appears, other than in subsection (d), as so redesignated;

16. 1992

    Futures Trading Practices Act of 1992

    Pub. L. 102–546 § 402(2)(B) · 106 Stat. 3590

    1. Redesignated · 7 U.S.C. § 6a(c)

       Pub. L. 102–546, § 402(2)(B), (C), redesignated par. (3) as subsec. (c)

    2. Substituted · 7 U.S.C. § 6a(c)

       Pub. L. 102–546, § 402(2)(B), (C), substituted “subsection (a)” for “paragraph (1)”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 102–546, § 402(2)(B), (C), redesignated par. (3) as subsec. (c) and substituted “subsection (a)” for “paragraph (1)”.

    Enacted provision · exact public law section
    (B) in subsection (3) by striking “subsection (1)” and inserting “subsection (a)”;

17. 1992

    Futures Trading Practices Act of 1992

    Pub. L. 102–546 § 402(2)(C) · 106 Stat. 3590

    Redesignated · 7 U.S.C. § 6a(d); 7 U.S.C. § 6a(e)

    Pub. L. 102–546, § 402(2)(C), redesignated pars. (4) and (5) as subsecs. (d) and (e), respectively

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 102–546, § 402(2)(C), redesignated pars. (4) and (5) as subsecs. (d) and (e), respectively.

    Enacted provision · exact public law section
    (C) by redesignating subsections (1) through (5) as subsections (a) through (e), respectively; and

18. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(5)(tI)(s123)(a)(4)(A) · 114 Stat. 2763

    Inserted · 7 U.S.C. § 6a(a)

    Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(A)], inserted “or derivatives transaction execution facilities” after “contract markets” in first sentence and “or derivatives transaction execution facility” after “contract market” in second sentence

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(A)], inserted “or derivatives transaction execution facilities” after “contract markets” in first sentence and “or derivatives transaction execution facility” after “contract market” in second sentence.

    Enacted provision · exact public law section
    (5) H.R. 5660, as introduced on December 14, 2000.

19. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(5)(tI)(s123)(a)(4)(B)(i) · 114 Stat. 2763

    Inserted · 7 U.S.C. § 6a(b)(1)

    Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(B)(i)], inserted “, or derivatives transaction execution facility or facilities,” after “markets”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(B)(i)], inserted “, or derivatives transaction execution facility or facilities,” after “markets”.

    Enacted provision · exact public law section
    (5) H.R. 5660, as introduced on December 14, 2000.

20. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(5)(tI)(s123)(a)(4)(B)(ii) · 114 Stat. 2763

    Inserted · 7 U.S.C. § 6a(b)(2)

    Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(B)(ii)], inserted “or derivatives transaction execution facility” after “contract market”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(B)(ii)], inserted “or derivatives transaction execution facility” after “contract market”.

    Enacted provision · exact public law section
    (5) H.R. 5660, as introduced on December 14, 2000.

21. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(5)(tI)(s123)(a)(4)(C) · 114 Stat. 2763

    1. Substituted · 7 U.S.C. § 6a(e)

       Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(C)], substituted “contract market, derivatives transaction execution facility, or” for “contract market or”

    2. Substituted · 7 U.S.C. § 6a(e)

       Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(C)], substituted “licensed, designated, or registered” for “licensed or designated”

    3. Substituted · 7 U.S.C. § 6a(e)

       Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(C)], substituted “contract market or derivatives transaction execution facility, or” for “contract market, or”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(4)(C)], substituted “contract market, derivatives transaction execution facility, or” for “contract market or” wherever appearing, “licensed, designated, or registered” for “licensed or designated” in two places, and “contract market or derivatives transaction execution facility, or” for “contract market, or”.

    Enacted provision · exact public law section
    (5) H.R. 5660, as introduced on December 14, 2000.

22. 2008

    CFTC Reauthorization Act of 2008

    Pub. L. 110–246 § 13203(g)(1) · 122 Stat. 1651

    Inserted · 7 U.S.C. § 6a(a)

    Pub. L. 110–246, § 13203(g)(1), inserted “, or on electronic trading facilities with respect to a significant price discovery contract” after “execution facilities” in first sentence and “, or on an electronic trading facility with respect to a significant price discovery contract,” after “execution facility” in second sentence

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 110–246, § 13203(g)(1), inserted “, or on electronic trading facilities with respect to a significant price discovery contract” after “execution facilities” in first sentence and “, or on an electronic trading facility with respect to a significant price discovery contract,” after “execution facility” in second sentence.

    Enacted provision · exact public law section
    (1) in subsection (a)— (A) in the first sentence, by inserting “, or on electronic trading facilities with respect to a significant price discovery contract” after “derivatives transaction execution facilities”; and (B) in the second sentence, by inserting “, or on an electronic trading facility with respect to a significant price discovery contract,” after “derivatives transaction execution facility”; and

23. 2008

    CFTC Reauthorization Act of 2008

    Pub. L. 110–246 § 13203(g)(2)(A) · 122 Stat. 1651

    Inserted · 7 U.S.C. § 6a(b)(1)

    Pub. L. 110–246, § 13203(g)(2)(A), inserted “or electronic trading facility with respect to a significant price discovery contract” after “facility or facilities”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 110–246, § 13203(g)(2)(A), inserted “or electronic trading facility with respect to a significant price discovery contract” after “facility or facilities”.

    Enacted provision · exact public law section
    (A) in paragraph (1), by inserting “or electronic trading facility with respect to a significant price discovery contract” after “facility or facilities”; and

24. 2008

    CFTC Reauthorization Act of 2008

    Pub. L. 110–246 § 13203(g)(2)(B) · 122 Stat. 1651

    Inserted · 7 U.S.C. § 6a(b)(2)

    Pub. L. 110–246, § 13203(g)(2)(B), inserted “or electronic trading facility with respect to a significant price discovery contract” after “execution facility”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 110–246, § 13203(g)(2)(B), inserted “or electronic trading facility with respect to a significant price discovery contract” after “execution facility”.

    Enacted provision · exact public law section
    (B) in paragraph (2), by inserting “or electronic trading facility with respect to a significant price discovery contract” after “derivatives transaction execution facility”; and

25. 2008

    CFTC Reauthorization Act of 2008

    Pub. L. 110–246 § 13203(g)(3) · 122 Stat. 1651

    1. Inserted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13203(g)(3), in first sentence, inserted “or by any electronic trading facility” after “registered by the Commission”

    2. Inserted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13203(g)(3), in first sentence, inserted “or on an electronic trading facility” after “derivatives transaction execution facility” the second place it appeared

    3. Inserted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13203(g)(3), in first sentence, inserted “or electronic trading facility” before “or such board of trade” in two places, and, in second sentence

    4. Inserted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13203(g)(3), in first sentence, inserted “or electronic trading facility with respect to a significant price discovery contract” after “registered by the Commission”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 110–246, § 13203(g)(3), in first sentence, inserted “or by any electronic trading facility” after “registered by the Commission”, inserted “or on an electronic trading facility” after “derivatives transaction execution facility” the second place it appeared, and inserted “or electronic trading facility” before “or such board of trade” in two places, and, in second sentence, inserted “or electronic trading facility with respect to a significant price discovery contract” after “registered by the Commission”.

    Enacted provision · exact public law section
    (3) in subsection (e)— (A) in the first sentence— (i) by inserting “or by any electronic trading facility” after “registered by the Commission”; (ii) by inserting “or on an electronic trading facility” after “derivatives transaction execution facility” the second place it appears; and (iii) by inserting “or electronic trading facility” before “or such board of trade” each place it appears; and (B) in the second sentence, by inserting “or electronic trading facility with respect to a significant price discovery contract” after “registered by the Commission”.

26. 2008

    CFTC Reauthorization Act of 2008

    Pub. L. 110–246 § 13105(a) · 122 Stat. 1651

    1. Inserted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13105(a), inserted “or certified by a registered entity pursuant to section 7a–2(c)(1) of this title” after “approved by the Commission”

    2. Substituted · 7 U.S.C. § 6a(e)

       Pub. L. 110–246, § 13105(a), substituted “section 13(a)(5)” for “section 13(c)”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 110–246, § 13105(a), inserted “or certified by a registered entity pursuant to section 7a–2(c)(1) of this title” after “approved by the Commission” and substituted “section 13(a)(5)” for “section 13(c)”.

    Enacted provision · exact public law section
    (a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is amended— (1) by inserting “or certified by a registered entity pursuant to section 5c(c)(1)” after “approved by the Commission” ; and (2) by striking “section 9(c)” and inserting “section 9(a)(5)”.

27. 2010

    Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 737(a)(1) · 124 Stat. 1376

    1. Amended · 7 U.S.C. § 6a(a)

       Pub. L. 111–203, § 737(a)(1)–(3), designated existing provisions as par. (1)

    2. Inserted · 7 U.S.C. § 6a(a)

       Pub. L. 111–203, § 737(a)(1)–(3), inserted heading

    3. Substituted · 7 U.S.C. § 6a(a)

       Pub. L. 111–203, § 737(a)(1)–(3), substituted “swaps that perform or affect a significant price discovery function with respect to registered entities” for “on electronic trading facilities with respect to a significant price discovery contract”

    4. Inserted · 7 U.S.C. § 6a(a)

       Pub. L. 111–203, § 737(a)(1)–(3), inserted “, including any group or class of traders,” after “held by any person”

    5. Substituted · 7 U.S.C. § 6a(a)

       Pub. L. 111–203, § 737(a)(1)–(3), substituted “swaps traded on or subject to the rules of a designated contract market or a swap execution facility, or swaps not traded on or subject to the rules of a designated contract market or a swap execution facility that performs a significant price discovery function with respect to a registered entity,” for “on an electronic trading facility with respect to a significant price discovery contract,”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 111–203, § 737(a)(1)–(3), designated existing provisions as par. (1), inserted heading, substituted “swaps that perform or affect a significant price discovery function with respect to registered entities” for “on electronic trading facilities with respect to a significant price discovery contract”, inserted “, including any group or class of traders,” after “held by any person”, and substituted “swaps traded on or subject to the rules of a designated contract market or a swap execution facility, or swaps not traded on or subject to the rules of a designated contract market or a swap execution facility that performs a significant price discovery function with respect to a registered entity,” for “on an electronic trading facility with respect to a significant price discovery contract,”.

    Enacted provision · exact public law section
    (1) by inserting after “(a)” the following: “(1) In general.— ” ;

    Effective date note
    Pub. L. 111–203, title VII, § 737(d), July 21, 2010, 124 Stat. 1725, provided that: “This section [amending this section] and the amendments made by this section shall become effective on the date of the enactment of this section [July 21, 2010].”

28. 2010

    Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 737(a)(4) · 124 Stat. 1376

    Added · 7 U.S.C. § 6a(a)(2)(7)

    Pub. L. 111–203, § 737(a)(4), added pars. (2) to (7)

    Source evidence

    Code amendment note
    Subsec. (a)(2) to (7). Pub. L. 111–203, § 737(a)(4), added pars. (2) to (7).

    Enacted provision · exact public law section
    (4) by adding at the end the following: “(2) Establishment of limitations.— “(A) In general.— In accordance with the standards set forth in paragraph (1) of this subsection and consistent with the good faith exception cited in subsection (b)(2), with respect to physical commodities other than excluded commodities as defined by the Commission, the Commission shall by rule, regulation, or order establish limits on the amount of positions, as appropriate, other than bona fide hedge positions, that may be held by any person with respect to contracts of sale for future delivery or with respect to options on the contracts or commodities traded on or subject to the rules of a designated contract market. “(B) Timing.— “(i) Exempt commodities.— For exempt commodities, the limits required under subparagraph (A) shall be established within 180 days after the date of the enactment of this paragraph. “(ii) Agricultural commodities.— For agricultural commodities, the limits required under subparagraph (A) shall be established within 270 days after the date of the enactment of this paragraph. “(C) Goal.— In establishing the limits required under subparagraph (A), the Commission shall strive to ensure that trading on foreign boards of trade in the same commodity will be subject to comparable limits and that any limits to be imposed by the Commission will not cause price discovery in the commodity to shift to trading on the foreign boards of trade. “(3) Specific limitations.— In establishing the limits required in paragraph (2), the Commission, as appropriate, shall set limits— “(A) on the number of positions that may be held by any person for the spot month, each other month, and the aggregate number of positions that may be held by any person for all months; and “(B) to the maximum extent practicable, in its discretion— “(i) to diminish, eliminate, or prevent excessive speculation as described under this section; “(ii) to deter and prevent market manipulation, squeezes, and corners; “(iii) to ensure sufficient market liquidity for bona fide hedgers; and “(iv) to ensure that the price discovery function of the underlying market is not disrupted. “(4) Significant price discovery function.— In making a determination whether a swap performs or affects a significant price discovery function with respect to regulated markets, the Commission shall consider, as appropriate: “(A) Price linkage.— The extent to which the swap uses or otherwise relies on a daily or final settlement price, or other major price parameter, of another contract traded on a regulated market based upon the same underlying commodity, to value a position, transfer or convert a position, financially settle a position, or close out a position. “(B) Arbitrage.— The extent to which the price for the swap is sufficiently related to the price of another contract traded on a regulated market based upon the same underlying commodity so as to permit market participants to effectively arbitrage between the markets by simultaneously maintaining positions or executing trades in the swaps on a frequent and recurring basis. “(C) Material price reference.— The extent to which, on a frequent and recurring basis, bids, offers, or transactions in a contract traded on a regulated market are directly based on, or are determined by referencing, the price generated by the swap. “(D) Material liquidity.— The extent to which the volume of swaps being traded in the commodity is sufficient to have a material effect on another contract traded on a regulated market. “(E) Other material factors.— Such other material factors as the Commission specifies by rule or regulation as relevant to determine whether a swap serves a significant price discovery function with respect to a regulated market. “(5) Economically equivalent contracts.— “(A) Notwithstanding any other provision of this section, the Commission shall establish limits on the amount of positions, including aggregate position limits, as appropriate, other than bona fide hedge positions, that may be held by any person with respect to swaps that are economically equivalent to contracts of sale for future delivery or to options on the contracts or commodities traded on or subject to the rules of a designated contract market subject to paragraph (2). “(B) In establishing limits pursuant to subparagraph (A), the Commission shall— “(i) develop the limits concurrently with limits established under paragraph (2), and the limits shall have similar requirements as under paragraph (3)(B); and “(ii) establish the limits simultaneously with limits established under paragraph (2). “(6) Aggregate position limits.— The Commission shall, by rule or regulation, establish limits (including related hedge exemption provisions) on the aggregate number or amount of positions in contracts based upon the same underlying commodity (as defined by the Commission) that may be held by any person, including any group or class of traders, for each month across— “(A) contracts listed by designated contract markets; “(B) with respect to an agreement contract, or transaction that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity, contracts traded on a foreign board of trade that provides members or other participants located in the United States with direct access to its electronic trading and order matching system; and “(C) swap contracts that perform or affect a significant price discovery function with respect to regulated entities. “(7) Exemptions.— The Commission, by rule, regulation, or order, may exempt, conditionally or unconditionally, any person or class of persons, any swap or class of swaps, any contract of sale of a commodity for future delivery or class of such contracts, any option or class of options, or any transaction or class of transactions from any requirement it may establish under this section with respect to position limits.” .

    Effective date note
    Pub. L. 111–203, title VII, § 737(d), July 21, 2010, 124 Stat. 1725, provided that: “This section [amending this section] and the amendments made by this section shall become effective on the date of the enactment of this section [July 21, 2010].”

29. 2010

    Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 737(b)(1) · 124 Stat. 1376

    Substituted · 7 U.S.C. § 6a(b)(1)

    Pub. L. 111–203, § 737(b)(1), substituted “or swap execution facility or facilities” for “or derivatives transaction execution facility or facilities or electronic trading facility”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 111–203, § 737(b)(1), substituted “or swap execution facility or facilities” for “or derivatives transaction execution facility or facilities or electronic trading facility”.

    Enacted provision · exact public law section
    (1) in paragraph (1), by striking “or derivatives transaction execution facility or facilities or electronic trading facility” and inserting “or swap execution facility or facilities”; and

    Effective date note
    Pub. L. 111–203, title VII, § 737(d), July 21, 2010, 124 Stat. 1725, provided that: “This section [amending this section] and the amendments made by this section shall become effective on the date of the enactment of this section [July 21, 2010].”

30. 2010

    Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 737(b)(2) · 124 Stat. 1376

    Substituted · 7 U.S.C. § 6a(b)(2)

    Pub. L. 111–203, § 737(b)(2), which directed substitution of “or swap execution facility” for “or derivatives transaction execution facility or facilities or electronic trading facility”, was executed by making the substitution for “or derivatives transaction execution facility or electronic trading facility” to reflect the probable intent of Congress

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 111–203, § 737(b)(2), which directed substitution of “or swap execution facility” for “or derivatives transaction execution facility or facilities or electronic trading facility”, was executed by making the substitution for “or derivatives transaction execution facility or electronic trading facility” to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (2) in paragraph (2), by striking “or derivatives transaction execution facility or facilities or electronic trading facility” and inserting “or swap execution facility”.

    Effective date note
    Pub. L. 111–203, title VII, § 737(d), July 21, 2010, 124 Stat. 1725, provided that: “This section [amending this section] and the amendments made by this section shall become effective on the date of the enactment of this section [July 21, 2010].”

31. 2010

    Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 737(c) · 124 Stat. 1376

    1. Amended · 7 U.S.C. § 6a(c)

       Pub. L. 111–203, § 737(c), designated existing provisions as par. (1)

    2. Added · 7 U.S.C. § 6a(c)

       Pub. L. 111–203, § 737(c), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 111–203, § 737(c), designated existing provisions as par. (1) and added par. (2).

    Enacted provision · exact public law section
    (c) Bona Fide Hedging Transaction.— Section 4a(c) of the Commodity Exchange Act is amended— (1) by inserting “(1)” after “(c)”; and (2) by adding at the end the following: “(2) For the purposes of implementation of subsection (a)(2) for contracts of sale for future delivery or options on the contracts or commodities, the Commission shall define what constitutes a bona fide hedging transaction or position as a transaction or position that— “(A) (i) represents a substitute for transactions made or to be made or positions taken or to be taken at a later time in a physical marketing channel; “(ii) is economically appropriate to the reduction of risks in the conduct and management of a commercial enterprise; and “(iii) arises from the potential change in the value of— “(I) assets that a person owns, produces, manufactures, processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising; “(II) liabilities that a person owns or anticipates incurring; or “(III) services that a person provides, purchases, or anticipates providing or purchasing; or “(B) reduces risks attendant to a position resulting from a swap that— “(i) was executed opposite a counterparty for which the transaction would qualify as a bona fide hedging transaction pursuant to subparagraph (A); or “(ii) meets the requirements of subparagraph (A).” .

    Effective date note
    Pub. L. 111–203, title VII, § 737(d), July 21, 2010, 124 Stat. 1725, provided that: “This section [amending this section] and the amendments made by this section shall become effective on the date of the enactment of this section [July 21, 2010].”

53 of 55 references resolved to an enrolled provision · 1 partial · 1 unresolved