covered transaction shall be 0.1 percent of the specified base amount with respect to such covered transaction. (c) Specified base amount For purposes of this section, the term specified base amount means— (1) except as provided in paragraph (2), the fair market value of a security (determined as of the time of the covered transaction), and (2) in the case of any payment with respect to a derivative, the amount of such payment. (d) Covered transaction For purposes of this section— (1) In general The term covered transaction means— (A) except as provided in subparagraph (B), any purchase if— (i) such purchase occurs on, or is subject to the rules of, a qualified board or exchange located in the United States, or (ii) the purchaser or seller is a United States person, and (B) any transaction with respect to a derivative if— (i) such derivative is traded on, or is subject to the rules of, a qualified board or exchange located in the United States, or (ii) any party with rights under such derivative is a United States person. (2) Exception for initial issues No tax shall be imposed under subsection (a) on any covered transaction with respect to the initial issuance of any security described in subparagraph (A), (B), or (C) of subsection (e)(1). (e) Definitions and special rules For purposes of this section— (1) Security For purposes of this section, the term security means— (A) any share of stock in a corporation, (B) any partnership or beneficial ownership interest in a partnership or trust, (C) except as provided in paragraph (2), any note, bond, debenture, or other evidence of indebtedness, and (D) any derivative (as defined in section 4476). (2) Exception for certain traded short-term indebtedness A note, bond, debenture, or other evidence of indebtedness which— (A) is traded on, or is subject to the rules of, a qualified board or exchange located in the United States, and (B) has a fixed maturity of not more than 100 days, shall not be treated as described in paragraph (1)(C). (3) Qualified board or exchange