§ 1.1092(c)-3. (c)-3 Qualifying over-the-counter options.
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/us/cfr/t26/s§ 1.1092(c)-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)In general. Under section 1092(c)(4)(B)(i), an equity option is not a qualified covered call option unless it is traded on a national securities exchange that is registered with the Securities and Exchange Commission or other market that the Secretary determines has rules adequate to carry out the purposes of section 1092(c)(4). In accordance with section 1092(c)(4)(H), this requirement is modified as provided in paragraph
(b)of this section.
(b)Qualified covered call option status. A qualifying over-the-counter option, as defined in § 1.1092(c)-4(c), is a qualified covered call option if it meets the requirements of §§ 1.1092(c)-1 and 1.1092(c)-2(c) after using the language “qualifying over-the-counter option” in place of “equity option with flexible terms”. For purposes of this paragraph (b), a qualifying over-the-counter option is deemed to satisfy the requirements of section 1092(c)(4)(B)(i).
(c)Effective date. This section applies to qualifying over-the-counter options entered into on or after July 29, 2002. [67 FR 20900, Apr. 29, 2002]