Page:United States Statutes at Large Volume 114 Part 5.djvu/690

 114 STAT. 2763A-650 PUBLIC LAW 106-554—APPENDIX G contracts or options on such contracts if the Secretary determines that such person performs, with respect to such contracts or options, as the case may be, functions similar to the functions performed by persons described in paragraph (8)(A). Such determination shall be made to the extent appropriate to carry out the purposes of this section. "(C) SECURITIES FUTURES CONTRACT. —The term 'securities futures contract' has the meaning given to such term by section 1234B.". (2) Paragraph (4) of section 1256(f) is amended— (A) by inserting ", or dealer securities futures contracts," after "dealer equity options" in the text, and (B) by inserting "AND DEALER SECURITIES FUTURES CON- TRACTS" after "DEALER EQUITY OPTIONS" in the heading. (3) Paragraph (6) of section 1256(g) is amended to read as follows: "(6) EQUITY OPTION. —The term 'equity option' means any option— "(A) to buy or sell stock, or "(B) the value of which is determined directly or indirectly by reference to any stock or any narrow-based security index (as defined in section 3(a)(55) of the Securities Exchange Act of 1934, as in effect on the date of the enactment of this paragraph). The term 'equity option' includes such an option on a group of stocks only if such group meets the requirements for a narrow-based security index (as so defined).". (4) The Secretary of the Treasury or his delegate shall make the determinations under section 1256(g)(9)(B) of the Internal Revenue Code of 1986, as added by this Act, not later than July 1, 2001. (h) CONFORMING AMENDMENTS. — (1) Section 1223 is amended by redesignating paragraph (16) as paragraph (17) and by inserting after paragraph (15) the following new paragraph: "(16) If the security to which a securities futures contract (as defined in section 1234B) relates (other than a contract to which section 1256 applies) is acquired in satisfaction of such contract, in determining the period for which the taxpayer has held such security, there shall be included the period for which the taxpayer held such contract if such contract was a capital asset in the hands of the taxpayer.". (2) The table of sections for subpart IV of subchapter P of chapter 1 is amended by inserting after the item relating to section 1234A the following new item: "Sec. 1234B. Securities futvires contracts.". (i) DESIGNATION OF CONTRACT MARKETS. — Section 7701 is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (1) the following new subsection: "(m) DESIGNATION OF CONTRACT MARKETS. — Any designation by the Commodity Futures Trading Commission of a contract market which could not have been made under the law in effect on the day before the date of the enactment of the Commodity Futures Modernization Act of 2000 shall apply for purposes of this title except to the extent provided in regulations prescribed by the Secretary.".

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