Page:United States Statutes at Large Volume 124.djvu/1750

 124 STAT. 1724 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(A) PRICE LINKAGE.—The extent to which the swap uses or otherwise relies on a daily or final settlement price, or other major price parameter, of another contract traded on a regulated market based upon the same under- lying commodity, to value a position, transfer or convert a position, financially settle a position, or close out a posi- tion. ‘‘(B) ARBITRAGE.—The extent to which the price for the swap is sufficiently related to the price of another contract traded on a regulated market based upon the same underlying commodity so as to permit market partici- pants to effectively arbitrage between the markets by simultaneously maintaining positions or executing trades in the swaps on a frequent and recurring basis. ‘‘(C) MATERIAL PRICE REFERENCE.—The extent to which, on a frequent and recurring basis, bids, offers, or transactions in a contract traded on a regulated market are directly based on, or are determined by referencing, the price generated by the swap. ‘‘(D) MATERIAL LIQUIDITY.—The extent to which the volume of swaps being traded in the commodity is sufficient to have a material effect on another contract traded on a regulated market. ‘‘(E) OTHER MATERIAL FACTORS.—Such other material factors as the Commission specifies by rule or regulation as relevant to determine whether a swap serves a signifi- cant price discovery function with respect to a regulated market. ‘‘(5) ECONOMICALLY EQUIVALENT CONTRACTS.— ‘‘(A) Notwithstanding any other provision of this sec- tion, the Commission shall establish limits on the amount of positions, including aggregate position limits, as appro- priate, other than bona fide hedge positions, that may be held by any person with respect to swaps that are economically equivalent to contracts of sale for future delivery or to options on the contracts or commodities traded on or subject to the rules of a designated contract market subject to paragraph (2). ‘‘(B) In establishing limits pursuant to subparagraph (A), the Commission shall— ‘‘(i) develop the limits concurrently with limits established under paragraph (2), and the limits shall have similar requirements as under paragraph (3)(B); and ‘‘(ii) establish the limits simultaneously with limits established under paragraph (2). ‘‘(6) AGGREGATE POSITION LIMITS.—The Commission shall, by rule or regulation, establish limits (including related hedge exemption provisions) on the aggregate number or amount of positions in contracts based upon the same underlying com- modity (as defined by the Commission) that may be held by any person, including any group or class of traders, for each month across— ‘‘(A) contracts listed by designated contract markets; ‘‘(B) with respect to an agreement contract, or trans- action that settles against any price (including the daily or final settlement price) of 1 or more contracts listed Contracts.