98 STAT. 620
PUBLIC LAW 98-369—JULY 18, 1984 SEC. 102. SECTION 1256 EXTENDED TO CERTAIN OPTIONS. (a) GENERAL RULE.—
26 USC 1256. V; i.s-f
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(1) Section 1256 (relating to regulated futures contracts marked to market) is amended— (A) by striking out "regulated futures contract" each place it appears and inserting in lieu thereof "section 1256 contract", and (B) by striking out "regulated futures contracts" each place it appears and inserting in lieu thereof "section 1256 contracts". (2) Subsection (b) of section 1256 is amended to read as follows: "(b) SECTION 1256 CONTRACT DEFINED.—For purposes of this section, the term 'section 1256 contract' means— "(1) any regulated futures contract, "(2) any foreign currency contract, "(3) any nonequity option, and "(4) any dealer equity option." (3) Subsection (g) of section 1256 is amended to read as follows: "(g) DEFINITIONS.—For purposes of this section— "(1) REGULATED FUTURES CONTRACTS DEFINED.—The term 'regulated futures contract' means a contract— "(A) with respect to which the amount required to be deposited and the amount which may be withdrawn depends on a system of marking to market, and "(B) which is traded on or subject to the rules of a qualified board or exchange. "(2) FOREIGN CURRENCY CONTRACT DEFINED.— "(A) FOREIGN CURRENCY CONTRACT.—The
term 'foreign currency contract' means a contract— "(i) which requires delivery of, or the settlement of which depends on the value of, a foreign currency which is a currency in which positions are also traded through regulated futures contracts, "(ii) which is traded in the interbank market, and "(iii) which is entered into at arm's length at a price determined by reference to the price in the interbank market. "(B) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of subparagraph (A), including regulations excluding from the application of subparagraph (A) any contract (or type of contract) if its application thereto would be inconsistent with such purposes. "(3) NONEQUITY OPTION.—The term 'nonequity option' means any listed option which is not an equity option. "(4) DEALER EQUITY OPTION.—The term 'dealer equity option' means, with respect to an options dealer, any listed option £,. which— "(A) is an equity option, "(B) is purchased or granted by such options dealer in the normal course of his activity of dealing in options, and "(C) is listed on the qualified board or exchange on which such options dealer is registered. "(5) LISTED OPTION.—The term 'listed option' means any , option (other than a right to acquire stock from the issuer)
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