used in normal course of trade or business For purposes of this subchapter, the term derivative shall not include any contract with respect to any commodity if— (A) such contract requires physical delivery with the option of cash settlement only in unusual and exceptional circumstances, and (B) such commodity is used (and is used in quantities with respect to which such derivative relates) in the normal course of the taxpayer’s trade or business (or, in the case of an individual, for personal consumption). (c) Contracts with embedded derivative components (1) In general If a contract has derivative and nonderivative components, then each derivative component shall be treated as a derivative for purposes of this subchapter. If the derivative component cannot be separately valued, then the entire contract shall be treated as a derivative for purposes of this subchapter. (2) Exception for certain embedded derivative components of debt instruments A debt instrument shall not be treated as having a derivative component merely because— (A) such debt instrument is denominated in a nonfunctional currency (as defined in section 988(c)(1)(C)(ii)), or (B) payments with respect to such debt instrument are determined by reference to the value of a nonfunctional currency (as so defined). (d) Treatment of American Depository Receipts and similar instruments Except as otherwise provided by the Secretary, for purposes of this subchapter, American depository receipts (and similar instruments) with respect to shares of stock in foreign corporations shall be treated as shares of stock in such foreign corporations. . (b) Information reporting with respect to controlled foreign corporations Section 6038(a)(1)(B) of such Code is amended by inserting and transactions which are covered transactions for purposes of section 4475 by reason of the application of section 4475(h)(1) to such corporation before the semicolon at the end. (c) Conforming amendment The table of subchapters for chapter 36 of such Code is amended by inserting after