Page:United States Statutes at Large Volume 124.djvu/1749

124 STAT. 1723 PUBLIC LAW 111–203—JULY 21, 2010 designated contract market or a swap execution facility, or swaps not traded on or subject to the rules of a des- ignated contract market or a swap execution facility that performs a significant price discovery function with respect to a registered entity,’’; and (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 Commis- sion 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 commod- ities, 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 agricul- tural commodities, the limits required under subpara- graph (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 com- modity 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 discre- tion— ‘‘(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 signifi- cant price discovery function with respect to regulated markets, the Commission shall consider, as appropriate: Regulations. Contracts.