What Constitutes a “Qualified Board or Exchange” for Section 1256 Purposes?

A "qualified board or exchange" is defined as a national securities exchange registered with the SEC, a domestic board of trade designated as a contract market by the CFTC, or certain foreign exchanges approved by the IRS. The key requirement is that the contracts traded must be subject to a regulatory structure that ensures fair pricing and settlement, which is necessary for the mark-to-market valuation.