The proposed regulations confirm that over-the-counter foreign currency options are not subject to mark-to-market treatment under IRC Section 1256. The proposed regulations would explicitly overrule the Sixth Circuit's decision in Wright v. Commissioner and directly affect taxpayers relying on that decision to mark foreign currency options to market under IRC Section 1256. The proposed regulations would not affect foreign currency options that would otherwise qualify as IRC Section 1256 contracts, such as foreign currency options that qualify as nonequity options (e.g., FX options that are listed on certain exchanges). Taxpayers that have relied on Wright to include foreign currency options...