A section 1256 contract is any:
◎Regulated futures contract,
◎Foreign currency contract,
◎Nonequity option,
◎Dealer equity option, or
◎Dealer securities futures contract. Regulated futures contract. This is a contract that:
◎Provides that amounts that must be deposited to, or can be withdrawn from, your margin account depend on daily market conditions (a system of marking to market), and
◎Is traded on, or subject to the rules of, a qualified board of exchange. A qualified board of exchange is a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission, any board of trade or exchange approved by the Secretary of the Treasury, or a national securities exchange registered with the Securities and Exchange Commission.
