C-TMX US IRS Qualified Exchange


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.

Regulators C-TMX
Entity Types B/D; Corp; Exch
Reference Cir 111-24, 9/30/2024; Citation: 26 USC 1256;
Functions Compliance; Operations; Trade Reporting; Trading
Countries Canada
Category
State
Products Corporate; Derivatives; Equity; Fixed Income; Futures; Issuance/IPO; Securities
Regions Am
Rule Type Final
Rule Date 9/30/2024
Effective Date 11/1/2024
Rule Id 228333
Linked to N/A
Reg. Last Update 9/30/2024
Report Section US Investment

Last substantive update on 10/04/2024