Can a Trader Elect out of Section 1256 Treatment?

No, Section 1256 treatment is generally mandatory for contracts that qualify as Section 1256 contracts. Traders cannot elect out of the mark-to-market and 60/40 rules for these specific financial products.

However, traders who qualify as "traders in securities" may elect mark-to-market treatment under Section 475(f) for non-Section 1256 securities, but this is a different election.