[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR150.3]

[Page 562-563]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 150_LIMITS ON POSITIONS--Table of Contents
 
Sec.  150.3  Exemptions.

    (a) Positions which may exceed limits. The position limits set forth 
in Sec.  150.2 of this part may be exceeded to the extent such position 
are:
    (1) Bona fide hedging transactions as defined in Sec.  1.3(z) of 
this chapter;
    (2) [Reserved]
    (3) Spread or arbitrage positions between single months of a futures 
contract and/or, on a futures-equivalent basis, options thereon, outside 
of the spot month, in the same crop year; provided however, That such 
spread or arbitrage positions, when combined with any other net 
positions in the single month, do not exceed the all-months limit set 
forth in Sec.  150.2; or
    (4) Carried for an eligible entity as defined in Sec.  150.1(d), in 
the separate account or accounts of an independent account controller, 
as defined in Sec.  150.1(e), and not in the spot month if there is a 
position limit which applies to individual trading months during their 
expiration; Provided, however, That the overall positions held or 
controlled by each such independent account controller may not exceed 
the limits specified in Sec.  150.2.
    (i) Additional Requirements for Exemption of Affiliated Entities. If 
the independent account controller is affiliated with the eligible 
entity or another independent account controller, each of the affiliated 
entities must:
    (A) Have, and enforce, written procedures to preclude the affiliated 
entities from having knowledge of, gaining access to, or receiving data 
about, trades of the other. Such procedures must include document 
routing and other procedures or security arrangements, including 
separate physical locations, which would maintain the independence of 
their activities; provided, however, That such procedures may provide 
for the disclosure of information which is reasonably necessary for an 
eligible entity to maintain the level of control consistent with its 
fiduciary responsibilities and necessary to fulfill its duty to 
supervise diligently the trading done on its behalf;
    (B) Trade such accounts pursuant to separately-developed and 
independent trading systems;
    (C) Market such trading systems separately; and
    (D) Solicit funds for such trading by separate Disclosure Documents 
that meet the standards of Sec.  4.24 or Sec.  4.34 of this chapter, as 
applicable, where such Disclosure Documents are required under part 4 of 
this chapter.
    (ii) [Reserved]
    (b) Call for information. Upon call by the Commission, the Director 
of the Division of Market Oversight or the Director's delegee, any 
person claiming

[[Page 563]]

an exemption from speculative position limits under this section must 
provide to the Commission such information as specified in the call 
relating to the positions owned or controlled by that person; trading 
done pursuant to the claimed exemption; the futures, options or cash 
market positions which support the claim of exemption; and the relevant 
business relationships supporting a claim of exemption.

[53 FR 41571, Oct. 24, 1988, as amended at 56 FR 14315, Apr. 9, 1991; 57 
FR 44492, Sept. 28, 1992; 58 FR 17982, Apr. 7, 1993; 60 FR 38193, July 
25, 1995; 67 FR 62353, Oct. 7, 2002]