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Upon special call by the Act Administrator, each futures commission merchant, member of a contract market, or foreign broker, shall furnish to the Commodity Exchange Authority the following information for the commodity, contract market, and date specified in such call:
(a) The name, address, and principal occupation of all traders, including house accounts, holding open contracts on the records of such futures commission merchant, member of a contract market, or foreign broker;
(b) The open contracts held or controlled by such traders in each future; and
A period of 7 business days is ordered and required during which contracts for future delivery in the current delivery month of wheat, corn, oats, barley, rye, or flaxseed may be settled by delivery of the actual cash commodity after trading in such contracts has ceased, for each delivery month after May 1938, on all contract markets on which there is trading in futures in any of such commodities, and such contract markets, and each of them, are directed to provide therefor. (Secs. 5a(4), 8a, 49 Stat. 1497, 1500; 7 U.S.C. 7a(4), 12a) [13 F.R. 7860, Dec. 18, 1948]
§ 140.1 Central office.
(a) General. The principal office of the Commodity Exchange Authority is located at Washington, D.C., in the Administration Building, U.S. Department of Agriculture, and consists of the Office of the Administrator, Registration and Audit Division, Compliance Division, and Trading Division.
(b) The Administrator. Under the supervision of the Secretary of Agriculture and the general direction of the Assistant Secretary of Agriculture for Marketing and Consumer Services, the Administrator formulates, directs, and supervises the execution of the policies governing the activities of the Commodity Exchange authority; administers and is responsible for the enforcement of the Commodity Exchange Act, the orders of the Commodity Exchange Commission, and the orders and regulations of the Secretary of Agriculture promulgated under the Commodity Exchange Act. The administrator has final authority to issue calls and requests for information in connection with the administration of the Commodity Exchange Act, as provided in regulations promulgated thereunder (Parts 1-21 of this chapter).
(c) Divisions. The divisions are as follows:
(1) Registration and Audit Division. Analyzes applications of commodity exchanges for designation as contract markets to determine whether such applicants meet statutory requirements for such designation, and recommends approval or disapproval; develops and administers a program for registration of floor brokers to determine whether applicants meet statutory requirements, including fitness; develops and administers a program for determining whether applicants for registration as futures commission merchants meet statutory requirements for such registration, including financial and fitness requirements; and conducts audits of futures
commission merchants to assure proper segregation of customers' margins and accruing equities, including property deposited to secure customers' contracts and trades, and to determine compliance with the other recordkeeping requirements of the Commodity Exchange Act and regulations.
(2) Compliance Division. Investigates complaints and apparent violations of the Commodity Exchange Act; examines trade practices; recommends formal proceedings against violators; presents results of investigations to, and cooperates with, General Counsel's Office and the Department of Justice in the preparation of administrative and criminal cases; presents evidence and testimony in administrative and court proceedings; and reviews rules of contract markets and contract market enforcement of rules relating to contract terms and other trading requirements.
(3) Trading Division. Provides continuous surveillance of futures trading and price movements to appraise market developments; assembles and analyzes futures trading statistics for market supervision from reports of clearing members of exchanges, futures commission merchants and large traders; reviews, and enforces speculative limits on daily trading and positions of large traders; evaluates and analyzes current market information and cash commodity and futures price trends and relationships; conducts marketwide surveys of all traders' holdings in futures; and prepares economic and statistical reports on futures, trading for administrative use and for publication.
[32 F.R. 9648, July 4, 1967, as amended at 34 F.R. 321, Jan. 9, 1969; 34 F.R. 8107, May 23, 1969]
Offices are located at Room 1200, Board of Trade Building, 141 West Jackson Boulevard, Chicago, Ill. 60604; Room 356, Board of Trade Building, 4800 Main Street, Kansas City, Mo. 64112; Room 510, Grain Exchange Building, 4th Street and 4th Avenue South, Minneapolis, Minn. 55415; Room 508, Cotton Exchange Building, 231 Carondelet Street, New Orleans, La. 70130; and Room 2101, 61 Broadway, New York, N.Y. 10006. Under the general supervision of the appropriate regional director, these regional offices direct, coordinate, and conduct all activities of the Commodity Exchange Authority incident to
(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]
business transactions of any person or trade secrets or names of customers.
§ 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
ulations 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 product 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), onions, 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, peaunts, soybeans, soybean meal, livestock (including live cattle and live hogs), livestock products (including 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, fraud, and manipulative practices; 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 brokers; 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 trade practice investigations and surveys; investigates contract market delivery practices and procedures; audits books and records of futures commission merchants, floor brokers, and traders; analyzes futures commission merchants' financial statements submitted with their applications for registration; conducts analyses and appraisals of futures trading, cashfutures 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.
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.
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.
(c) Bona fide hedging. 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)).
(d) Manipulation; corners; responsibilitity of contract market. Nothing contained in this section 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 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)).
(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
(e) Definitions. As used in this part. the word "grain" includes wheat, corn, 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]
§ 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.