Rev. Rul. 86-7, 1986-1 C.B. 295, determined that the Mercantile Division of the

Montréal Exchange is a qualified board or exchange within the meaning of § 1256(g)

(7)(C). The Mercantile Division of the Montréal Exchange was an exchange associated with MX that has ceased operations and is now dormant.

LAW

Section 1256(g)(7) provides that the term “qualified board or exchange” means:

(A) a national securities exchange that is registered with the Securities and Exchange Commission,

(B) a domestic board of trade designated as a contract market by the CFTC, or

(C) any other exchange, board of trade, or other market that the Secretary of the Treasury or her delegate determines has rules adequate to carry out the purposes of § 1256.

HOLDING

The Internal Revenue Service (IRS) determines that MX, which is a regulated exchange of Québec, Canada, is a qualified board or exchange within the meaning of § 1256(g)(7)(C) as long as MX holds a valid Order of Registration under the CFTC FBOT registration system.

Effect on other revenue rulings