(a)       Position Limits

           (i)      Except as provided in Regulations 425.03, 425.04 and 425.05, no person may own or control positions, and no member firm may carry positions for another person, separately or in combination, net long or net short, for the purchase or sale of commodity futures contracts or, on a futures-equivalent basis, options on a commodity futures contract, in excess of those positions set forth in the position limit chart in Appendix 4C.  The position limits set forth in Appendix 4C shall not apply to bona fide or economically appropriate hedging positions which meet the requirements of Regulations 425.02 and 425.03, nor to positions subject to particular limits granted pursuant to Regulation 425.04.  As used herein, the term “net” shall mean the long or short position held after offsetting long futures positions against short futures positions.  The word “person” shall include individuals, associations, partnerships, limited liability companies, corporations and trusts.

           (ii)      In determining whether any person has exceeded the position limits specified in Appendix 4C or those limits determined pursuant to Regulations 425.03 or 425.05, or whether a position is a reportable position as defined herein, all positions in accounts for which such person by power of attorney or otherwise directly or indirectly holds positions or controls trading, except as provided in Regulation 425.05, shall be included with the positions held by such person.  Such limits upon positions shall apply to positions held by two or more persons acting pursuant to an expressed or implied agreement or understanding, the same as if the positions were held by, or the trading of the positions were done by, a single person.

           (iii)     Except as provided in Regulation 425.05, any person holding positions in more than one account, or holding accounts or positions in which the person by power of attorney or otherwise directly or indirectly has a 10% or greater ownership or equity interest, must aggregate all such accounts or positions, unless such person is a limited partner, shareholder, member of a limited liability company, beneficiary of a trust or similar type of pool participant in a commodity pool.  However, this exception does not apply if the person is the commodity pool operator, controls the pool’s trading decisions, or has an ownership or equity interest of 25% or greater in a commodity pool the operator of which is exempt from registration with the Commodity Futures Trading Commission.

           (iv)     A member firm will not be in violation of this Regulation if it carries positions for its customers in excess of the limits specified in Appendix 4C, for such reasonable period of time as the firm may require to discover and liquidate the excess positions or file the appropriate hedge or exemption statements for the customer accounts in question in accordance with Regulation 425.03 or 425.04.  For the purposes of this Regulation, a “reasonable period of time” shall generally not exceed one business day for those positions that are not subject to the provisions of Regulations 425.03 or 425.04.

           (v)      If an option position exceeds position limits for passive reasons such as a market move or exercise assignment, the person who owns or controls the options position shall be allowed one business day to liquidate the excess position without being considered in violation of the limits.  In addition, if at the close of trading, an option position exceeds position limits when evaluated using the previous day’s delta factors, but does not exceed the limits when evaluated using the delta factors of that day’s close of trading, then the position shall not constitute a position limit violation.

           (vi)     The Exchange may direct a person who owns or controls a position, or a member firm that carries a position for another person, to liquidate or otherwise reduce the position, when the total position, as defined in subsections (a)(ii) and (a)(iii) above, exceeds the position limits set forth in Appendix 4C, or as specifically determined pursuant to Regulations 425.03 or 425.04.

(b)       Reportable Positions

           (i)      If a person owns or controls, or a member firm carries a position for another person, equal to or greater than the number of contracts designated as reportable positions in Appendix 4C, long or short in any one month, then all such futures and options on such futures contracts owned, controlled or carried by that person or member firm, whether above the given level or not, shall necessarily be deemed reportable positions.

           (ii)      On or before the first day on which any position must be reported, the person owning or controlling, or the member firm carrying the position, must furnish to the Exchange a report, in the form prescribed by the Exchange, identifying the owner of the account for which the position must be reported and all persons associated with the account as described in subsections (a)(ii) and (a)(iii) above.

           (iii)     Every person or member firm must report each and every reportable position and provide the report required in subsection (b)(ii) above for each person within any account carried on an omnibus basis, unless, upon application of the person or member firm to the Exchange, a nonmember omnibus account is specifically approved to report directly to the Exchange.

Note: The Commodity Futures Trading Commission has imposed speculative position limits on certain products, including Corn, Oats, Soybean, Wheat, Soybean Oil and Soybean Meal futures contracts, as provided in Part 150 of CFTC Regulations. (01/01/06)