Capacity; Speculative Position Limits Clause Samples
The "Capacity; Speculative Position Limits" clause defines the maximum number of contracts or positions a party can hold in a particular commodity or financial instrument, in accordance with regulatory or exchange-imposed limits. It typically requires parties to monitor and manage their trading activities to ensure they do not exceed these limits, which may be set by agencies like the CFTC or by the relevant exchange. This clause helps prevent market manipulation and excessive speculation, ensuring fair and orderly markets by keeping participants within prescribed boundaries.
Capacity; Speculative Position Limits. (i) To the extent that the Trading Advisor’s trading is subject to speculative position limits or other comparable capacity limitations, the Trading Advisor agrees that it will reserve for the Fund sufficient trading capacity that the Fund’s trading would be unrestricted by such limits were the Fund’s capital to total $250 million, provided that the Trading Advisor may restrict the amounts that the Fund may deposit into its account advised by the Trading Advisor in a particular month to $30 million or such lesser amount as the Trading Advisor reasonably deems necessary, in extraordinary circumstances, to comply with its duty to clients, provided, that the imposition of such limitation for a particular month shall not reduce the total capacity reserved for the Fund, and, provided further, that the Trading Advisor shall have no obligation to accept additional deposits once the $250 million limitation has been reached. The Trading Advisor also agrees to consult with the Manager in the event that, notwithstanding the undertaking in the preceding sentence, the Manager believes that speculative position limits or other comparable capacity restrictions may affect the Trading Advisor’s strategy on behalf of the Fund.
(ii) If the Trading Advisor either alone or aggregated with the positions of any other person, if such aggregation shall be required by the CEA, the CFTC or any other regulatory authority having jurisdiction shall exceed or be about to exceed applicable limits in any commodity interest traded for the Fund, the Trading Advisor shall immediately take such action as the Trading Advisor may deem fair and equitable to comply with such limits, and shall immediately deliver to the Fund a written explanation of the action taken to comply with such limits. If such limits are exceeded by the Fund, the Manager may require the Trading Advisor to liquidate positions as required.
Capacity; Speculative Position Limits. (i) To the extent that the Trading Advisor’s trading is subject to capacity limitations, the Trading Advisor agrees that it will reserve for the Fund sufficient trading capacity that the Fund’s trading would be unrestricted by such limits were the Fund’s capital to total $250 million, provided that the Trading Advisor may restrict the amounts that the Fund may deposit into its account advised by the Trading Advisor in a particular month as follows: (i) for the first month in which the Fund makes such a deposit, the Trading Advisor may limit the deposit to $75 million, (ii) thereafter, the Trading Advisor may limit the deposit to $30 million (or such lesser amount as the Trading Advisor reasonably deems necessary, in extraordinary circumstances, to comply with its duty to clients), provided, that the imposition of such limitations for a particular month shall not reduce the total capacity reserved for the Fund, and, provided further, that the Trading Advisor shall have no obligation to accept additional deposits once the $250 million limitation has been reached. The Trading Advisor also agrees to consult with the Manager in the event that, notwithstanding the undertaking in the preceding sentence, the Manager believes that capacity restrictions may affect the Trading Advisor’s strategy on behalf of the Fund.
(ii) If the Trading Advisor (either alone or aggregated with the positions of any other person, if such aggregation shall be required by the CEA, the CFTC or any other regulatory authority having jurisdiction) shall exceed or be about to exceed applicable limits in any commodity interest traded for the Fund, the Trading Advisor shall immediately take such action as the Trading Advisor may deem fair and equitable to comply with the limits, and shall immediately deliver to the Fund a written explanation of the action taken to comply with such limits. If such limits are exceeded by the Fund, the Manager may require the Trading Advisor to liquidate positions as required.
Capacity; Speculative Position Limits. (i) To the extent that the Trading Advisor’s trading is subject to speculative position limits or other comparable capacity limitations, the Trading Advisor agrees that it shall, for a period of 12 months beginning on the date of this Agreement, reserve for the Trading Entity a capacity equal to twice the amount of the initial Trading Level of the Accounts (i.e., if the initial Trading Level is $25 million, then $25 million x 2 = $50 million) such that the Trading Entity’s allocation to the Trading Advisor up to such amount would be unrestricted during such period. The Trading Advisor also agrees to consult with the Trading Entity in the event that, notwithstanding the undertaking in the preceding sentence, the Trading Advisor believes that speculative position limits or comparable capacity restrictions may materially affect the Trading Advisor’s strategy on behalf of the Trading Entity.
(ii) If the Trading Advisor (either alone or aggregated with the positions of any other person, if such aggregation shall be required by the CEA, the CFTC or any other regulatory authority having jurisdiction) shall exceed or be about to exceed applicable speculative position limits in any commodity interest traded for the Trading Entity, the Trading Advisor shall seek to allocate transaction orders equitably between the Accounts and the other accounts and clients the Trading Advisor manages.
Capacity; Speculative Position Limits. (i) To the extent that the Trading Advisor’s trading is subject to speculative position limits or other comparable capacity limitations, the Trading Advisor agrees that it shall, for a period of 24 months beginning on the date of this Agreement, reserve for the Trading Entity a capacity equal to a Trading Level (as defined below) of $100 million such that the Trading Entity’s allocation to the Trading Advisor up to such amount would be unrestricted during such period. The Trading Advisor also agrees to consult with the Trading Entity in the event that, notwithstanding the undertaking in the preceding sentence, the Trading Advisor believes that speculative position limits or comparable capacity restrictions may materially affect the Trading Advisor’s strategy on behalf of the Trading Entity.
(ii) If the Trading Advisor (either alone or aggregated with the positions of any other person, if such aggregation shall be required by the CEA, the CFTC or any other regulatory authority having jurisdiction) shall exceed or be about to exceed applicable speculative position limits in any commodity interest traded for the Trading Entity, the Trading Advisor shall seek to allocate transaction orders equitably between the Accounts and the other accounts and clients the Trading Advisor manages.