Page:United States Statutes at Large Volume 49 Part 1.djvu/1537

 14 92 "Floor broker." "The commission." Proh ibiti on ag ainst deal ings in g rain fu- tures. Exceptions. Excessive specula- tion in commodities for future de live ry causing unreasonable price changes. Commission to pro- clai m limit s on fu tures tra ding. Different trading lim- its for different com- moditie s, etc. E x e m p t i n g "s prea ds" or "st rad - dles ." Promulgation of or- der af ter reasonable no tice. Unlawful trans - actions. Excessive trading in any one busin ess day. Exces sive ne t long or net short position in futures transactions. 74TH C ONGRESS. SESS. II. CH. 545 . JUNE 15, 1936. connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to marg in, gua ran tee, or sec ure any tra des or con trac ts that re sult or may resul t the refro m. The words `floor br oker' shall mean any per- son who, in or surrounding any `pit', `ring', `post', or other place provided by a contract market for the meeting o f persons similarly engaged, shall engage in executing for others any order for the purchase or sale of any commodity for future delivery on or sub- ject to the rules of any contract market, and who for such services receives or accepts any commission or other compensation. The words ` the commi ssion' s hall mean the Com modity Ex change Co m- mission, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General ." S '. 4. Section 4 of the Grain Futures Act (U. S. C., 1934 ed., title 7, sec . 6) is amended by- (a) striking o ut the word "except" at the end of the first para- graph ; (b) striking out all of paragraph (a) ; and (c) striking out the parentheses and letter "b" and the word "Where" at the beginning of paragraph (b) and inserting in lieu thereof the words "except, in any of the foregoing cases, where" . SEC . 5 . The Grain Futures Act is amended by adding after section 4 (U. S. C., 1934 ed., title 7, sec. 6) the following new sections : j "SEC. 4a. (1) Excessive speculation in any commodity under con- tracts of sale of such commodity for future delivery made on or sub- ect to the rules of contract markets causing sudden or unreasonable fluctua tions or unwarran ted chang es in th e price o f such co m- modity, is an undue and unnecessary burden on interstate commerce in such commodity. For the purpose of diminishing, eliminating, or preventing such burden, the commission shall, from time to time, after due notice and opportunity for hearing, by order, proclaim and fix such limits on the amount of trading under contracts of sale of such commodity for future delivery on or subject to the rules of any contract market which may be done by any person as the com- mission finds is necessary to diminish, eliminate, or prevent such b ur d en. Nothing in this section shall be constr ued to prohibit the com missi on fr om fi xing diffe rent tradi ng li mits for d iffer ent c om- modities, markets, futures, or delivery months, or different trading limits for buying and selling operations, or different limits for the purposes of subparagraphs (A) and (B) of this section, or from exempting transactions commonly known to the trade as `spreads' or `straddles' or from fixing trading limits applying to such trans- actions different from trading limits fixed for other transactions. "(2) The commission shall, in such order, fix a reasonable time (not to exceed ten days) after the order's promulgation ; after which, and until such order is suspended, modified, or revoked, it shall be unlawful for any person- "(A) directly or indirectly to buy or sell, or agree to buy or sell, under contracts of sale of such commodity for future delivery on or subject to the rules of the contract market or markets to which the order applies, any amount of such commodity during any one business day in excess of any trading limit fixed for one business day by the commission in such order fo r or with respect to such commodity ; or "(B) directly or indirectly to buy or sell, or agree to buy or sell, under contracts of sale of such commodity for future delivery on or subject to the rules of any contract mark et, any amount of such commodity that shall result in giving such person a net long or net short position at any one time in or with respect to any such