Page:United States Statutes at Large Volume 111 Part 1.djvu/930

 Ill STAT. 906 PUBLIC LAW 105-34—AUG. 5, 1997 "(f) REGULATIONS.— The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.", (b) ELECTION OF MARK TO MARKET FOR DEALERS IN COMMOD- ITIES AND FOR TRADERS IN SECURITIES OR COMMODITIES.— Section 475 (relating to mark to market accounting method for dealers in securities) is amended by redesignating subsection (e) as subsection (g) and by inserting after subsection (d) the following new subsections: "(e) ELECTION OF MARK TO MARKET FOR DEALERS IN COMMOD- ITIES. — "(1) IN GENERAL.—In the case of a dealer in commodities who elects the application of this subsection, this section shall apply to commodities held by such dealer in the same manner as this section applies to securities held by a dealer in securities. "(2) COMMODITY,—For purposes of this subsection and subsection if), the term 'commodity' means— "(A) any commodity which is actively traded (within the meaning of section 1092(d)(1)); "(B) any notional principal contract with respect to any commodity described in subparagraph (A); "(C) any evidence of an interest in, or a derivative instrument in, any commodity described in subparagraph (A) or (B), including any option, forward contract, futures contract, short position, and any similar instrument in such a commodity; and "(D) any position which— "(i) is not a commodity described in subparagraph (A),(B),or(C), "(ii) is a hedge with respect to such a commodity, and "(iii) is clearly identified in the taxpayer's records as being described in this subparagraph before the close of the day on which it was acquired or entered into (or such other time as the Secretary may by regulations prescribe). "(3) ELECTION. — An election under this subsection may be made without the consent of the Secretary. Such an election, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary. "(f) ELECTION OF MARK TO MARKET FOR TRADERS IN SECURITIES OR COMMODITIES.— "(1) TRADERS IN SECURITIES. — "(A) IN GENERAL.—In the case of a person who is engaged in a trade or business as a trader in securities and who elects to have this paragraph apply to such trade or business— "(i) such person shall recognize gain or loss on any security held in connection with such trade or business at the close of any taxable year as if such security were sold for its fair market value on the last business day of such taxable year, and "(ii) any gain or loss shall be taken into account for such taxable year.

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