---
kind: "section"
citation: "15 U.S.C. § 78j–2"
title: "15"
title_heading: "Commerce and Trade"
number: "78j–2"
heading: "Position limits and position accountability for security-based swaps and large trader reporting"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/78j-2"
units:
  - "Chapter 2B — Securities Exchanges"
---

# §78j–2. Position limits and position accountability for security-based swaps and large trader reporting

- (a) **Position limits—** As a means reasonably designed to prevent fraud and manipulation, the [Commission](/usc/15/78c.md?p=a-15) 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](/usc/15/78c.md?p=a-68-A) that may be held by any [person](/usc/15/78c.md?p=a-9). In establishing such limits, the [Commission](/usc/15/78c.md?p=a-15) may require any [person](/usc/15/78c.md?p=a-9) to aggregate positions in—
  - (1) any [security-based swap](/usc/15/78c.md?p=a-68-A) and any [security](/usc/15/78c.md?p=a-10) or loan or group of [securities](/usc/15/78c.md?p=a-10) or loans on which such [security-based swap](/usc/15/78c.md?p=a-68-A) is based, which such [security-based swap](/usc/15/78c.md?p=a-68-A) references, or to which such [security-based swap](/usc/15/78c.md?p=a-68-A) is related as described in paragraph (68) of [section 78c(a) of this title](/usc/15/78c.md?p=a), and any other instrument relating to such [security](/usc/15/78c.md?p=a-10) or loan or group or [index](/usc/15/78c.md?p=a-68-E) of [securities](/usc/15/78c.md?p=a-10) or loans; or
  - (2) any [security-based swap](/usc/15/78c.md?p=a-68-A) and—
    - (A) any [security](/usc/15/78c.md?p=a-10) or group or [index](/usc/15/78c.md?p=a-68-E) of [securities](/usc/15/78c.md?p=a-10), 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](/usc/15/78c.md?p=a-68-A) as described in paragraph (68) of [section 78c(a) of this title](/usc/15/78c.md?p=a); and
    - (B) any other instrument relating to the same [security](/usc/15/78c.md?p=a-10) or group or [index](/usc/15/78c.md?p=a-68-E) of [securities](/usc/15/78c.md?p=a-10) described under [subparagraph (A)](#a-2-A).
- (b) **Exemptions—** The [Commission](/usc/15/78c.md?p=a-15), by rule, regulation, or order, may conditionally or unconditionally exempt any [person](/usc/15/78c.md?p=a-9) or class of [persons](/usc/15/78c.md?p=a-9), any [security-based swap](/usc/15/78c.md?p=a-68-A) or class of [security-based swaps](/usc/15/78c.md?p=a-68-A), or any transaction or class of transactions from any requirement the [Commission](/usc/15/78c.md?p=a-15) 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](/usc/15/78c.md?p=a-15), 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](/usc/15/78c.md?p=a-26)—
    - (A) to adopt rules regarding the size of positions in any [security-based swap](/usc/15/78c.md?p=a-68-A) that may be held by—
      - (i) any [member](/usc/15/78c.md?p=a-3-A) of such [self-regulatory organization](/usc/15/78c.md?p=a-26); or
      - (ii) any [person](/usc/15/78c.md?p=a-9) for whom a [member](/usc/15/78c.md?p=a-3-A) of such [self-regulatory organization](/usc/15/78c.md?p=a-26) effects transactions in such [security-based swap](/usc/15/78c.md?p=a-68-A); and
    - (B) to adopt rules reasonably designed to ensure compliance with requirements prescribed by the [Commission](/usc/15/78c.md?p=a-15) under this subsection.
  - (2) **Requirement to aggregate positions—** In establishing the limits under [paragraph (1)](#c-1), the [self-regulatory organization](/usc/15/78c.md?p=a-26) may require such [member](/usc/15/78c.md?p=a-3-A) or [person](/usc/15/78c.md?p=a-9) to aggregate positions in—
    - (A) any [security-based swap](/usc/15/78c.md?p=a-68-A) and any [security](/usc/15/78c.md?p=a-10) or loan or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10) or loans on which such [security-based swap](/usc/15/78c.md?p=a-68-A) is based, which such [security-based swap](/usc/15/78c.md?p=a-68-A) references, or to which such [security-based swap](/usc/15/78c.md?p=a-68-A) is related as described in [section 78c(a)(68) of this title](/usc/15/78c.md?p=a-68), and any other instrument relating to such [security](/usc/15/78c.md?p=a-10) or loan or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10) or loans; or
    - (B)
      - (i) any [security-based swap](/usc/15/78c.md?p=a-68-A); and
      - (ii) any [security-based swap](/usc/15/78c.md?p=a-68-A) and any other instrument relating to the same [security](/usc/15/78c.md?p=a-10) or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10).
- (d) **Large trader reporting—** The [Commission](/usc/15/78c.md?p=a-15), by rule or regulation, may require any [person](/usc/15/78c.md?p=a-9) that effects transactions for such [person](/usc/15/78c.md?p=a-9)’s own account or the account of others in any [securities](/usc/15/78c.md?p=a-10)-based [swap](/usc/15/78c.md?p=a-69) or uncleared [security-based swap](/usc/15/78c.md?p=a-68-A) and any [security](/usc/15/78c.md?p=a-10) or loan or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10) or loans as set forth in paragraphs [(1)](#a-1) and [(2)](#a-2) of subsection (a) under this section to report such information as the [Commission](/usc/15/78c.md?p=a-15) may prescribe regarding any position or positions in any [security-based swap](/usc/15/78c.md?p=a-68-A) or uncleared [security-based swap](/usc/15/78c.md?p=a-68-A) and any [security](/usc/15/78c.md?p=a-10) or loan or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10) or loans and any other instrument relating to such [security](/usc/15/78c.md?p=a-10) or loan or group or [narrow-based security index](/usc/15/78c.md?p=a-55-B) of [securities](/usc/15/78c.md?p=a-10) or loans as set forth in paragraphs [(1)](#a-1) and [(2)](#a-2) of subsection (a) under this section.

## Source credit

(June 6, 1934, ch. 404, title I, § 10B, as added Pub. L. 111–203, title VII, § 763(h), July 21, 2010, 124 Stat. 1778.)

## Notes

### 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.