; regulations The Secretary shall— (1) provide guidance regarding such information reporting concerning covered transactions as the Secretary deems appropriate, and (2) prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section, including the use of non-United States persons in such transactions. 4476. Derivative defined (a) In general For purposes of this subchapter, except as otherwise provided in this section, the term derivative means any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) the value of which, or any payment or other transfer with respect to which, is (directly or indirectly) determined by reference to one or more of the following: (1) Any share of stock in a corporation. (2) Any partnership or beneficial ownership interest in a partnership or trust. (3) Any evidence of indebtedness. (4) Except as provided in subsection (b)(1), any real property. (5) Any commodity which is actively traded (within the meaning of section 1092(d)(1)). (6) Any currency. (7) Any rate, price, amount, index, formula, or algorithm. (8) Any other item as the Secretary may prescribe. Except as provided in regulations prescribed by the Secretary to prevent the avoidance of the purposes of this subchapter, such term shall not include any item described in paragraphs (1) through (8). (b) Exceptions (1) Certain real property (A) In general For purposes of this subchapter, the term derivative shall not include any contract with respect to interests in real property (as defined in section 856(c)(5)(C)) if such contract requires physical delivery of such real property. (B) Options to settle in cash (i) In general For purposes of subparagraph (A), a contract which provides for an option of cash settlement shall not be treated as requiring physical delivery of real property unless the option is— (I) not exercisable unconditionally, and (II) exercisable only in unusual and exceptional circumstances. (ii) Option of cash