CBB Volume 6: Contents
MAE-3.5 Determination of Position and Trading Limits
The positionG and trading limits in respect of any security or contract including futures and options contracts traded by, through or with a memberG of a licensed exchangeG or licensed market operatorG which holds an appropriate license to trade such contracts, shall be determined from time-to-time by the licensed exchangeG or licensed market operatorG using such criteria or methodology as may be established by the licensed exchangeG or licensed market operatorG with the approval of the CBB.
The positionG and trading limits under Paragraph MAE-3.5.1 may include limits on a personG holding or controlling positionsG , separately or in combination, net long or net short, for the purchase or sale of any securitiesG or contracts, including futures or options contracts.
MAE-3.5.3(a) Shall require a personG or any personG acting for him pursuant to an express or implied agreement or understanding, who holds or controls net long or net short positionsG in any contract in excess of the positionG limits determined under Paragraph MAE-3.5.1, to trade under such conditions and restrictions as the licensed exchangeG or licensed market operatorG considers necessary to ensure compliance with the positionG limits determined under that Paragraph; and(b) May require the personG referred to in MAE-3.5.3 (a) to do one or more of the following actions:(i) Cease any further increase in his positionG ;(ii) Liquidate his positionG to comply with the positionG limits determined under Paragraph MAE-3.5.1 within such time as may be determined by the licensed exchangeG or licensed market operatorG ; and(iii) Be subject to higher margin requirements in respect of his positionG .Amended: April 2013