Title 15, Commerce and TradeRelease 119-110
§78j–2 Position Limits and Position Accountability for Security-based Swaps and Large Trader Reporting
Title 15 › CHAPTER 2B — SECURITIES EXCHANGES › § 78j–2
Summary
The Commission must set size caps on how many security-based swaps a person can hold to help stop fraud and market manipulation. Those caps can include rules that treat hedges differently. The Commission can make people count (aggregate) positions across a swap and the stock, loan, index, or other instruments tied to that swap when figuring limits. The Commission can also give exemptions to people, types of swaps, or trades. It can tell self-regulatory groups to make matching rules for their members, including aggregation rules. Finally, the Commission can require big traders to report information about their positions in security-based swaps and the related stocks, loans, indexes, or other instruments.
Full Legal Text
Title 15, §78j–2
Commerce and Trade, Source: USLM XML via OLRC
(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)
(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 78c(a) of this title; 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 chapter, 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)
(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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This chapter, referred to in subsec. (c)(1), was in the original “this title”. See
References in Text
note set out under section 78a of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle B (§§ 761–774) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle B, see section 774 of Pub. L. 111–203, set out as an
Effective Date
of 2010 Amendment note under section 77b of this title.
Reference
Citations & Metadata
Citation
15 U.S.C. § 78j–2
Title 15, Commerce and Trade
Last Updated
Sep 22, 2026
Release point: 119-110