Page:United States Statutes at Large Volume 113 Part 3.djvu/411

 PUBLIC LAW 106-170—DEC. 17, 1999 113 STAT. 1929 "(B) such instrument is clearly identified in such dealer's records as being described in subparagraph (A) before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe); "(7) any hedging transaction which is clearly identified as such before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe); or "(8) supplies of a type regularly used or consumed by the taxpayer in the ordinary course of a trade or business of the taxpayer. "(b) DEFINITIONS AND SPECIAL RULES. — ' ' " (1) COMMODITIES DERIVATIVE FINANCIAL INSTRUMENTS. — For purposes of subsection (a)(6)— "(A) COMMODITIES DERIVATIVES DEALER.— The term 'commodities derivatives dealer' means a person which regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the; ordinary course of a trade or business. " (B) COMMODITIES DERIVATIVE FINANCIAL INSTRUMENT.— "(i) IN GENERAL.—The term 'commodities derivative financial instrument' means any contract or financial instrument with respect to commodities (other than a share of stock in a corporation, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract (as defined in section 1256(b)), the value or settlement price of which is c;alculated by or determined by reference to a specified index. "(ii) SPECIFIED INDEX.— The term 'specified index' means any one or more or any combination of— "(I) a fixed rate, price, or amount, or "(II) a variable rate, price, or amount, which is based on any current, objectively determinable financial or economic information with respect to commodities which is not within the control of any of the parties to the contract or instrument and is not unique to any of the parties'circumstances. " (2) HEDGING TRANSACTION. — "(A) IN GENERAL.— For purposes of this section, the term 'hedging transaction' means any transaction entered into by the taxpayer in the normal course of the taxpayer's trade or business primarily— "(i) to manage risk of price changes or currency fluctuations with respect to ordinary property which is held or to be held by the teixpayer, "(ii) to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, by the taxpayer, or "(iii) to manage such othei: risks as the Secretary may prescribe in regulations.

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