in applicable property to which section 1092 applies. (2) Taxable transaction The term taxable transaction means, with respect to any applicable property interest— (A) any termination or transfer (as defined in section 491(c)(3)) of such interest, or (B) any payment in fulfillment or partial fulfillment of such interest. . 3. Coordination of new rules with existing rules (a) Coordination with rules for dealers and traders (1) Derivatives not treated as securities Section 475(c)(2) is amended— (A) by adding and at the end of subparagraph (C), (B) by striking subparagraphs (D) and (E) and by redesignating subparagraph (F) as subparagraph (D), (C) by striking subparagraph (A), (B), (C), (D), or (E) in subparagraph (D)(i), as so redesignated, and inserting subparagraph (A), (B), or (C) , and (D) by amending the last sentence to read as follows: Such term shall not include any derivative to which section 491(a) applies. . (2) Derivatives not treated as commodities Section 475(e)(2) is amended— (A) by adding and at the end of subparagraph (A), (B) by striking subparagraphs (B) and (C) and by redesignating subparagraph (D) as subparagraph (B), and (C) by striking subparagraph (A), (B) or (C) in subparagraph (B)(i), as so redesignated, and inserting subparagraph (A) . (3) Conforming amendments (A) Section 475(b) is amended by striking paragraph (4). (B) Section 475(d)(2)(B) is amended— (i) by striking subsection (c)(2)(F)(iii) and inserting subsection (c)(2)(D)(iii) , and (ii) by striking subsection (c)(2)(F) and inserting subsection (c)(2)(D) . (C) Section 475(f)(1)(D) is amended by striking subsections (b)(4) and (d) and inserting subsection (d) . (b) Coordination with straddle rules (1) In general Section 1092 is amended to read as follows: 1092. Straddles (a) Recognition of loss in case of straddles, etc (1) Limitation on recognition of loss (A) In general Any loss with respect to 1 or more positions shall be taken into account for any taxable year only to the extent that the amount of such loss exceeds the