(a) Position limits. As a means reasonably designed to prevent fraud
and manipulation, the Commission shall, by rule or regulation, as
necessary or appropriate in the public interest or for the protection
of investors, establish limits (including related hedge exemption
provisions) on the size of positions in any security-based swap that
may be held by any person. In establishing such limits, the Commission
may require any person to aggregate positions in—
(1) any security-based swap and any security
or loan or group of securities or loans on which such security-based
swap is based, which such security-based swap references, or to which
such security-based swap is related as described in paragraph (68)
of section 3(a), and any other instrument relating to such security
or loan or group or index of securities or loans; or
(2) any security-based swap and—
(A) any security
or group or index of securities, the price, yield, value, or volatility
of which, or of which any interest therein, is the basis for a material
term of such security-based swap as described in paragraph (68) of
section 3(a); and
(B) any other instrument relating to the same security or group or
index of securities described under subparagraph (A).
(b) Exemptions. The Commission, by rule, regulation, or order, may conditionally
or unconditionally exempt any person or class of persons, any security-based
swap or class of security-based swaps, or any transaction or class
of transactions from any requirement the Commission may establish
under this section with respect to position limits.
(c) SRO rules.
(1) In general. As a means reasonably designed to prevent fraud or manipulation,
the Commission, by rule, regulation, or order, as necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of this title, may direct a self-regulatory
organization—
(A) to adopt rules regarding the size
of positions in any security-based swap that may be held by—
(i) any member
of such self-regulatory organization; or
(ii) any person for whom a member of such
self-regulatory organization effects transactions in such security-based
swap; and
(B) to adopt rules reasonably designed
to ensure compliance with requirements prescribed by the Commission
under this subsection.
(2) Requirement
to aggregate positions. In establishing the limits under paragraph
(1), the self-regulatory organization may require such member or person
to aggregate positions in—
(A) any security-based swap and any
security or loan or group or narrow-based security index of securities
or loans on which such security-based swap is based, which such security-based
swap references, or to which such security-based swap is related as
described in section 3(a)(68), and any other instrument relating to
such security or loan or group or narrow-based security index of securities
or loans; or
(B) (i) any security-based swap; and
(ii) any security-based swap
and any other instrument relating to the same security or group or narrow-based
security index of securities.
(d) Large trader
reporting. The Commission, by rule or regulation, may require
any person that effects transactions for such person’s own account
or the account of others in any securities-based swap or uncleared
security-based swap and any security or loan or group or narrow-based
security index of securities or loans as set forth in paragraphs (1)
and (2) of subsection (a) under this section to report such information
as the Commission may prescribe regarding any position or positions
in any security-based swap or uncleared security-based swap and any
security or loan or group or narrow-based security index of securities
or loans and any other instrument relating to such security or loan
or group or narrow-based security index of securities or loans as
set forth in paragraphs (1) and (2) of subsection (a) under this section.
[15 USC 78j-2.
As added by act of July 21, 2010 (124 Stat. 1778).]
