Singapore legislation
Section 42
Section 42
Fixing of position and trading limits in futures contracts
(1)
For the purpose of diminishing or eliminating, or preventing excessive speculation in any commodity under a futures contract, the Authority or a Futures Exchange, with the approval of the Authority, may, by notice in writing from time to time, establish and fix such limits as it considers necessary on the amount of trading which may be done or positions which may be held by any person, generally or specifically, under a futures contract on or subject to the business rules of a futures market.
(2)
In determining whether a person has exceeded such limits, the positions held and trading done by any person, directly or indirectly, controlled by such a person shall be included with the positions held and trading done by that person.
(3)
Such limits upon positions and trading shall apply to positions held by, and trading done by, 2 or more persons acting pursuant to an express or implied agreement or understanding, as if the positions were held by, or the trading done by, a single person.
(4)
This section shall not apply to transactions or positions which are bona fide hedging transactions or positions as defined by a futures market in accordance with such regulations as may be prescribed.
(5)
No person shall, directly or indirectly —
buy or sell or agree to buy or sell, under a futures contract on or subject to the business rules of the futures market, any number of such futures contract in excess of the trading limits fixed for one business day, or other stated period set by the Authority or a Futures Exchange with the approval of the Authority; or
hold or control a net buy or sell position under a futures contract on or subject to the business rules of the futures market in excess of any position limit fixed by the Authority or a Futures Exchange, with the approval of the Authority, with respect to that futures contract.
(6)
Nothing in this section shall preclude the Authority or a Futures Exchange, with the approval of the Authority, from fixing different trading or position limits for different futures contracts or delivery months or for different days remaining until the last day of trading in a contract or different trading limits for the purposes of subsection (5), or from exempting transactions under this section.