Par. 2. Section 1.1256(g)-2 is added to read as follows:
(a) Foreign currency contract. For purposes of section 1256, the term foreign currency contract means a forward contract that—
(1) Requires delivery of, or the settlement of which depends on the value of, a foreign currency that is a currency in which positions are also traded through regulated futures contracts;
(2) Is traded in the interbank market; and
(3) Is entered into at arm's length at a price determined by reference to the price in the interbank market.
(b) Applicability date. This section applies to contracts entered into on or after [date 30 days after date of publication of the final rule in the Federal Register ].