74TH C ONGRESS . SESS. II. CH. 545. JUN E 15, 1936 .
1493 commodity in excess of any trading limit fixed by the commis- sion for net long or net short position in such order for or with res pect t o such commo dity . 3 No order issued under
1 of this section shall Boaa sae hed gin g ~~()
par agrap h ()
transactions exempted. apply to transactions which are shown to be bona fide hedging trans- actions . For the purposes of this para graph, bona fide hedging Term construed, transactions shall mean sales of any commodity for future delivery on or subject to the rules of any board of trade to the extent that such sales are offset in quantity by the ownership or purchase of the same cash commodity or, conversely, purchases of any commodity for future delivery on or subject to the rules of any board of trade to the extent that such purchases are offset by sales of the same cash com- modity. There shall be included in the amount of any commodity which may be he dged by any person- "(A) the amount of such commodity such person is raising, or Producers . in good faith intends or expects to raise, within the next twelve mon ths, o n land (in t he Uni ted St ates o r its Territ ories) which such person owns or leases ; "(B) an amount of such commodity the sale of which for future Hedg ing against sale of products or by pro d- delivery would be a reasonable hedge against the products or uctsofcommodities . bypro ducts of suc h comm odity owned or pur chased by su ch per son, or the purchase of which for future delivery would be a reasonable hedge again st the sale of any produ ct or byprod uct of such com- modity by such person . "(4) This section shall apply to a person that is registered as a R egis ter ed futu res commission merchant fu tures commis sion m erchan t or a s floo r brok er und er aut hority of de aling on own ac- this Act only to the extent that transactions made by such person are ""' - made on behalf of or for the account or benefit of such person . This T rans act ions by section shall not apply to transactions made by, or on behalf of, or United state s, etc . at the direction of, the United States, or a duly authorized agency thereof . "SEC . 4b . It shall be unlawful for any member of a contract mar- Contracts of sal e by members of contract ket, or for any correspondent, agent, or employee of any member, in markets, in interstate or in connection with any order to make, or the making of
an commerce . g
(1)
Y Unlawful acts . contract of sale of any commodity in interstate commerce, or (2) any contract of sale of any commodity for future delivery made or to be made, on or subject to the rules of any contract market Yor or on behalf of any person if such contract for future delivery is or may be used for (a) hedging any transaction in interstate commerce in such commodity or the products or by products thereof, or (b) determin- ing the price basis of any transaction in interstate commerce in such com modity , or ( c) del iverin g any such c ommodi ty sol d, shi pped, or received in interstate commerce for the fulfillment thereof- "(A) to cheat or defraud or attempt to cheat or defraud such chea ting, etc . person ; "(B) willfully to make or cause to be made to such person any False reports . false report or statement thereof, or willfully to enter or cause to be entered for such person any false record thereof ; "(C) willfully to deceive or attempt to deceive such person by willful deception, any means whatsoever in regard to any such order or contract or the disposition or execution of any such order or contract, or in regard to any act of agency performed with respect to such order or contract for such person ; or "(D) to bucket such order, or to fill such order by offset against B ucketingorders, etc. the order or orders of any other person, or willfully and knowingly and without the prior consent of such person to become the buyer in respect to any selling order of such pe rson, or become the sel ler in respect to any buying order of such person .
