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Provides that amounts that must be deposited to, or can be withdrawn from, your margin account depend on daily market conditions (a system of marking to market), and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.