The Code of Federal Regulations of the United States of America

determine whether they meet the requirements of the Act and regulations and recommends to the Administrator acceptance or rejection of applications. It provides technical assistance to the Office of the General Counsel in the preparation of administrative complaints and in the review and analysis of evidence for presentation at administrative hearings. It provides assistance to the Department of Justice in the preparation of criminal information or indictments and in the review and analysis of evidence for presentation to grand juries and in criminal proceedings. It prepares regulations to eliminate abusive practices or practices which interfere with the efficiency of the futures trading system.

(e) Trading Division. The division conducts economic analyses of future trading to develop and support enforcement policies and procedures. It develops and coordinates economic research projects on regulated commodities conducted by colleges. It provides technical guidance and coordinates economic analyses conducted by the regions. It conducts studies of commodity markets and futures trading to determine the need for new or revised speculative limits. It provides technical leadership, guidance, and review to a national program of enforcement of speculative limits. It provides technical leadership, guidance, and review to the operation of a national reporting system on commodity futures trading; and develops and prepares reporting system regulations, instructions, and procedures. It provides technical leadership, guidance, and review to a national program of surveillance and analysis of the market operations of large traders, commodity brokers, and others, including marketwide position and trading surveys. It prepares economic and statistical reports on futures market developments for administrative use and publications. It maintains a reference file of permanent historical records on trading activities including statistical information on trading, open contracts futures prices, deliveries, cost of delivery, and carrying charges. It conducts analyses of price, price variability, and price relationships in cash and futures markets. It analyzes applications of processors and manufacturers who desire to qualify under the anticipatory hedging provisions of the Act.

[36 F.R. 17331, Aug. 28, 1971]

The Central Region office is located at Room A-1, Board of Trade Building, 141 West Jackson Boulevard, Chicago, IL 60604, and is responsible for enforcement of the Commodity Exchange Act and administration of the programs of the Agency in the States of Illinois, Indiana, Michigan, Ohio, and Wisconsin. The office is responsible for the supervision of trading on the Chicago Board of Trade, the Chicago Mercantile Exchange, the Chicago Open Board of Trade, the Memphis Board of Trade Clearing Association, and the Milwaukee Grain Exchange. The Western Region office is located at Room 356, Board of Trade Building, 4800 Main Street, Kansas City, MO 64112, with a suboffice at Room 510, Grain Exchange Building, Fourth Street and Fourth Avenue South, Minneapolis, MN 55415, and is responsible for enforcement of the Commodity Exchange Act and administration of the programs of the Agency in the States of Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming. The office is responsible for the supervision of trading on the Duluth Board of Trade, the Kansas City Board of Trade, the Merchants' Exchange of St. Louis, the Minneapolis Grain Exchange, the New Orleans Cotton Exchange, the Northern California Grain Exchange, the Portland Grain Exchange, and the Seattle Grain Exchange. The Eastern Region office is located at Room 2101, 61 Broadway, New York, NY 10006, and is responsible for enforcement of the Commodity Exchange Act and administration of the programs of the Agency in the States of Alabama, Connecticut, Delaware, Florida, Georgia, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hamphire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and West Virginia. The office is responsible for the supervision of trading on the Citrus Associates of the New York Cotton Exchange, Inc., the Commodity Exchange, Inc., the International Commercial Exchange, the New York Cotton Exchange, the New York Mercantile Exchange, the New York Produce Exchange, and the

Wool Associates of the New York Cotton Exchange, Inc.

[36 F.R. 17331, Aug. 28, 1971]

§ 140.3 Request for information and records, inspection, copying and copy fees.

(a) Any person wishing information or wishing to inspect, copy or obtain copies of records of the Commodity Exchange Authority may make his request in person or in writing to the Assistant Administrator, Commodity Exchange Authority, U.S. Department of Agriculture, Washington, D.C. 20250, or the appropriate Regional Director of the regional office listed in § 140.2. Public inspection and copying of materials will be permitted during official hours of business at the offices identified in §§ 140.1 and 140.2. Reasonable facilities for inspection, copying and for producing copies are provided at each of the offices of the Authority at scheduled costs. All requests for copies of identifiable records should specify as clearly and accurately as reasonably possible the records desired.

(b) Except to the extent that copies are provided by the Authority without charge, copies of its records will be provided by the Authority, in accordance with the provisions of this part, to any person upon request and payment of the prescribed fees for copying and searching established by the Director, Office of Plant and Operations of the Department of Agriculture.

[32 F.R. 9648, July 4, 1967, as amended at 34 F.R. 321, Jan. 9, 1969]

§ 140.4 Records available to the public. All records of the Commodity Exchange Authority are available for public inspection and copying, except exempt records which include the following:

(a) Matters relating solely to internal personnel rules and practices of the Agency. Among such records are manuals and instructions establishing guidelines for the staff in auditing or investigation procedures.

(b) Matters specifically exempted from disclosure by statute. An example of such a statute is the Commodity Exchange Act as amended (7 U.S.C. 1 et seq.). Among such records are correspondence with traders, futures commission merchants and the public containing data and information that discloses the business transactions of any person or trade secrets or names of customers.

(c) Matters containing trade secrets and commercial or financial information obtained from a person and privileged or confidential. Included among these matters are applications for registration as floor brokers and futures commission merchants and the financial statements accompanying the applications for registration as futures commission merchants, and reports from clearing members, futures commission merchants and reporting traders regarding futures trades and positions.

(d) Interagency and intraagency memorandums or letters which would not be available by law to a party other than an agency in litigation with the Department. Included among these matters would be opinions of the General Counsel regarding the application of various provisions of the Commodity Exchange Act and regulations.

(e) Investigatory files compiled for law enforcement purposes except to the extent available by law to a party other than an agency. Included among these records would be investigation files and audit files.

(f) Matters specifically required by Executive order to be kept secret.

(g) Personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.

[32 F.R. 9648, July 4, 1967, as amended at 34 F.R. 321, Jan. 9, 1969]

§ 140.5 Appeals.

(a) Any person from whom agency records are withheld may file an appeal with the Administrator, Commodity Exchange Authority. The appeal should be filed within 30 days after the person is notified that the record is being withheld.

(b) The appeal must be in writing, describing the records denied, contain a statement of grounds upon which the appeal is based, and be signed by the appellant or his authorized representative.

(c) The Administrator shall determine availability of the record, and furnish the applicant written notice of his determination.

§ 140.6 Compulsory process.

Production or disclosure of any exempt record sought by compulsory process shall be handled as provided by the regulations of the Secretary of Agriculture in 7 CFR Part 1.

Subpart B-Functions and Procedures

§ 140.10 Commodity Exchange Act.

(a) The basic objective of the Commodity Exchange Act (42 Stat. 998, as amended, 7 U.S.C. 1 et seq.), is to protect and facilitate commerce in commodities designated by the Act that are the subject of transactions involving the sale thereof on boards of trade (commodity exchanges) for future delivery and known as "futures." These commodities are: Wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, millfeeds, butter, eggs (including shell eggs, frozen whole eggs, frozen plain egg whites, and frozen plain egg yolks), Irish potatoes, wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock (including live cattle and live hogs), livestock products (including frozen boneless beef, frozen pork bellies, frozen skinned hams, steer carcass beef, and hides), and frozen concentrated orange juice.

(b) The functions and procedures of the Commodity Exchange Authority under this statute are designed to prevent price manipulation and corners; prevent dissemination of false and misleading crop and market information to influence prices; protect hedgers and other users of the commodity futures markets against cheating and fraud; insure the benefits of membership privileges on contract markets to cooperative associations of producers; insure trust-fund treatment of margin moneys and equities of hedgers and other traders and prevent the misuse of such funds by futures commission merchants; establish minimum financial standards for futures commission merchants; establish fitness requirements for futures commission merchants and floor brokers; require contract markets to enforce their trading rules and contract terms; and provide general information to the public regarding trading operations on contract markets.

(c) The Commodity Exchange Authority receives and considers applications of commodity exchanges for designation as contract markets preliminary to final decision by the Secretary. Applicants denied designation by the Secretary may appeal to the Commodity Exchange Commission (42 Stat. 1001, as amended; 7 U.S.C. 8). Inquiries

concerning procedure to be followed by commodity exchanges in filing applications for designation as contract markets should be addressed to the Administrator.

(d) The Commodity Exchange Authority reviews rules of contract markets to determine conformity with statutory requirements, and receives and considers applications for registration as futures commission merchants and as floor brokers. Application forms may be procured from the central office of the Commodity Exchange Authority or from any regional office thereof.

(e) The Commodity Exchange Authority enforces limits on speculative transactions and positions established by the Commodity Exchange Commission; reviews crop and market news and reports; analyzes cash-commodity transactions; cooperates with control committees of contract markets; observes floor trading; investigates alleged and apparent violations of the Act; conducts special market surveys; investigates contract market delivery practices and procedures; audits books and records of futures commission merchants; analyzes futures commission merchants' financial statements; conducts analyses and appraisals of futures trading, cash-futures relationships, and price movements; and compiles and publishes reports and other informational material relating to operations on commodity exchanges. Reporting forms required of clearing members of contract markets, futures commission merchants and foreign brokers, traders, and merchants, processors, and dealers may be procured from any regional office.

(f) Substantive rules promulgated pursuant to the Commodity Exchange Act are set forth in Parts 1 through 150 of this title. Procedural rules are published as Part O of this title.

[32 F.R. 9648, July 4, 1967, as amended at 34 F.R. 8107, May 23, 1969; 36 F.R. 17332, Aug. 28, 1971]

PART 150-ORDERS OF THE COMMODITY EXCHANGE COMMISSION

Sec. 150.1 Limits on position and daily trading in grain for future delivery. 150.2 Limits on position and daily trading in cotton for future delivery. 150.3 Limits on position and daily trading in rye for future delivery. 150.4 Limits on position and daily trading in soybeans for future delivery.

Sec.

150.5 Limits on position and daily trading in eggs for future delivery.

150.10 Limits on position and daily trading in potatoes for future delivery. 150.11 Limits on position and daily trading in corn for future delivery.

AUTHORITY: The provisions of this Part 150 issued under sec. 4a, as amended by sec. 5, 49 Stat. 1492; 7 U.S.C. 6a.

§ 150.1 Limits on position and daily trading in grain for future delivery.

The following limits on the amount of trading under contracts of sale of grain for future delivery on or subject to the rules of contract markets which may be done by any person are hereby proclaimed and fixed, to be in full force and effect on and after December 31, 1938:

(a) Position limits. (1) The limit on the maximum net long or net short position which any person may hold or control in any one grain on any one contract market, except as specifically authorized by paragraph (a) (2) of this section, is: 2,000,000 bushels in any one future or in all futures combined.

(2) To the extent that the net position held or controlled by any person in all futures combined in any one grain on any one contract market is shown to represent spreading in the same grain between markets, the limit on net position in all futures combined set forth in paragraph (a)(1) of this section may be exceeded on such contract market, but in no case shall the excess result in a net position of more than 3,000,000 bushels in all futures combined nor more than 2,000,000 bushels in any one future.

(b) Daily trading limits. (1) The limit on the maximum amount which any person may buy, and on the maximum amount which any person may sell, of any one grain on any one contract market during any one business day, except as specifically authorized by paragraph (b) (2) of this section, is: 2,000,000 bushels in any one future or in all futures combined.

(2) To the extent that purchases or sales of any one grain on any one contract market during any one business day made by any person are shown to represent spreading, or the closing of spreads, in the same grain between markets, the limit set forth in paragraph (b) (1) of this section may be exceeded on such contract market, but in no case shall the excess result in total purchases of more than 3,000,000 bushels, or total sales of more than 3,000,000 bushels, and

in no event shall such person's total purchases or total sales, during any one business day, in any one future exceed 2,000,000 bushels.

(1) Bona fide hedging transactions as defined in section 4a (3) of the Commodity Exchange Act (7 U.S.C. 6a (3));

(2) Purchase transactions or net long positions in commodities covered by this order, if such transactions or positions are made or held by a producer of livestock or poultry or both, to the extent that the bona fide purpose of such transactions or positions is to offset the price risk incident to filling anticipated feed requirements of such producer for a specified operating period not in excess of 1 year: Provided, The producer availing himself of this exemption files with the Commodity Exchange Authority, U.S. Department of Agriculture, Washington, D.C. 20250, at least 10 days prior to making any transaction or acquiring any position in excess of any limit established by this order, a statement showing his unfilled anticipated requirements for feeding for a specified operating period not in excess of 1 year. Such statement shall set forth in detail such producer's anticipated requirements and explain the method of determination thereof, and shall include but not be limited to the following information:

(i) Annual requirements of feed for the 3 calendar years next preceding, (ii) Anticipated feed requirements for a specified operating period not in excess of 1 year,

(iii) Inventory of feed on hand and/or purchases not yet delivered,

(iv) Unfilled anticipated feed requirements for a specified period not in excess of 1 year,

(v) Number of cattle, hogs, sheep, or poultry expected to be fed during a specified period not in excess of 1 year: And provided further, That whenever such producer's anticipated feed requirements shall change, he immediately files with the Commodity Exchange Authority a supplementary statement explaining such change and such producer also files with the Commodity Exchange Authority at least once each year, a statement setting forth the information described above.

(d) Manipulation; corners; responsibilitity of contract market. Nothing contained in this section shall be con

strued to affect any provisions of the Commodity Exchange Act relating to manipulation or corners, nor to relieve any contract market, or its governing board, from responsibility to prevent manipulation and corners under section 5(d) of the Commodity Exchange Act (sec. 5(d), 42 Stat. 1000, as amended; 7 U.S.C. 7(d)).

(e) Definitions. As used in this part the word "grain" includes wheat, oats, barley, and flaxseed, and the word "person" imports the plural or singular and includes individuals, associations, partnerships, corporations, and trusts.

(f) Application of limits. The foregoing limits upon positions and upon daily trading shall be construed to apply, respectively, 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 individual.

[13 F.R. 7860, Dec. 18, 1948, as amended at 27 F.R. 12367, Dec. 13, 1962; 36 F.R. 12164, June 26, 1971; 36 F.R. 19117, Sept. 29, 1971] § 150.2 Limits on position and daily

trading in cotton for future delivery. The following limits on the amount of speculative trading under contracts of sale of cotton for future delivery, on or subject to the rules of any contract market, which may be done by any person, are hereby proclaimed and fixed, to be in full force and effect on and after September 5, 1940:

(a) Position limit. The limit on the maximum net long or net short position which any person may hold or control in cotton on any one contract market is 30,000 bales in any one future or in all futures combined.

(b) Daily trading limit. The limit on the maximum amount of cotton which any person may buy, and on the maximum amount which any person may sell, on any one contract market during any one business day is 30,000 bales in any one future.

(c) Bona fide hedging; straddles. The foregoing limits upon position and upon daily trading shall not be construed to apply to bona fide hedging transactions, as defined in section 4a (3) of the Commodity Exchange Act (sec. 4a (3), as added by sec. 5, 49 Stat. 1493; 7 U.S.C. 6a (3)), nor, except during the delivery month, to (1) net positions in any one future to the extent that they

are shown to represent straddles between cotton futures or markets, or (2) purchases and sales of cotton which are shown to represent straddles or the closing of straddles between futures or markets.

(d) Manipulation; corners; responsibility of contract market. Nothing contained in this part shall be construed to affect any provisions of the Commodity Exchange Act relating to manipulation or corners, nor to relieve any contract market or its governing board from responsibility under section 5(d) of the Commodity Exchange Act (sec. 5(d), 42 Stat. 1000, as amended; 7 U.S.C. 7(d) ) to prevent manipulation and corners.

(e) Definition. As used in this part, the word "person" imports the plural or singular and includes individuals, associations, partnerships, corporations, and trusts.

[13 F.R. 7860, Dec. 18, 1948, as amended at 27 F.R. 12367, Dec. 13, 1962]

§ 150.3 Limits on position and daily trading in rye for future delivery.

The following limits on the amount of trading under contracts of sale of rye for future delivery on or subject to the rules of any contract market, which may be done by any person, are hereby proclaimed and fixed, to be in full force and effect on and after December 3, 1945:

(a) Position limit. The limit on the maximum net long or net short position which any person may hold or control in rye on or subject to the rules of any one contract market is 500,000 bushels in any one future or in all futures combined.

(b) Daily trading limit. The limit on the maximum amount of rye which any person may buy, and on the maximum amount which any person may sell, on or subject to the rules of any one contract market during any one business day is 500,000 bushels in any one future or in all futures combined.

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