### Question
Can you define what regulated futures contract means?


### Answer
**Regulated futures contract** is defined as the following in *26 U.S.C. § 1256*:

> a contract—


(A) with respect to which the amount required to be deposited and the amount which may be withdrawn depends on a system of marking to market, and


(B) which is traded on or subject to the rules of a qualified board or exchange

#### Citation:
  - *26 U.S.C. § 1256*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

