CME is going to publish a new contract: Options on Micro E-mini S&P 500 Future in Aug 31, 2020. I was wondering how will it be taxed?
There's already discussion like Are futures options eligible for the 60/40 tax rule? covering options trading tax, but this contract is different. As section 1256 says:
Section 1256 Contract A section 1256 contract is any:
Regulated futures: contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract.
Exceptions: A section 1256 contract does not include: Interest rate swaps, Currency swaps, Basis swaps, Interest rate caps, Interest rate floors, Commodity swaps, Equity swaps, Equity index swaps, Credit default swaps, or Similar agreements.
and the definition of Nonequity contracts:
This is any listed option (defined later) that is not an equity option. Nonequity options include debt options, commodity futures options, currency options, and broad-based stock index options. A broad-based stock index is based on the value of a group of diversified stocks or securities (such as the Standard and Poor's 500 index).
Warrants based on a stock index that are economically, substantially identical in all material respects to options based on a stock index are treated as options based on a stock index.
But this option is not a commodity futures option. I was wondering how will it be treated in tax?