On Sep. 30, C-TMX received designation as a qualified exchange.
C-TMX issued Circular 111-24 announcing it received designation from US IRS as a qualified board or exchange under Internal revenue code Section 1256 (26 USC 1256)
Ruling
Under that ruling, futures contracts will be treated as Section 1256 contracts.
The treatment of a futures contract as a Section 1256 contract generally requires a U.S. taxpayer to mark-to-market such contracts at the end of its taxable year.
While treating gains or losses as 60% long-term capital gain or loss and 40% short-term capital gain or loss, without regard to the holding period of the contract.
Effectiveness
Ruling is applicable for treatment of futures contracts traded on or after Nov. 1, 2024.
