MAE-3.5 MAE-3.5 Determination of Position and Trading Limits
MAE-3.5.1
The
position and trading limits in respect of any security or contract including futures and options contracts traded by, through or with amember of alicensed exchange orlicensed market operator which holds an appropriate license to trade such contracts, shall be determined from time-to-time by thelicensed exchange orlicensed market operator using such criteria or methodology as may be established by thelicensed exchange orlicensed market operator with the approval of the CBB.MAE-3.5.2
The
position and trading limits under Paragraph MAE-3.5.1 may include limits on aperson holding or controllingpositions , separately or in combination, net long or net short, for the purchase or sale of anysecurities or contracts, including futures or options contracts.MAE-3.5.3
The
licensed exchange orlicensed market operator :(a) Shall require aperson or anyperson acting for him pursuant to an express or implied agreement or understanding, who holds or controls net long or net shortpositions in any contract in excess of theposition limits determined under Paragraph MAE-3.5.1, to trade under such conditions and restrictions as thelicensed exchange orlicensed market operator considers necessary to ensure compliance with theposition limits determined under that Paragraph; and(b) May require theperson referred to in MAE-3.5.3 (a) to do one or more of the following actions:(i) Cease any further increase in hisposition ;(ii) Liquidate hisposition to comply with theposition limits determined under Paragraph MAE-3.5.1 within such time as may be determined by thelicensed exchange orlicensed market operator ; and(iii) Be subject to higher margin requirements in respect of hisposition .Amended: April 2013
