Abstract
This Article discusses the many tax issues that arise in connection with financial instruments that are linked to the performance of an index. These issues have become increasingly important in recent years in light of the very significant increase in the number and scope of both financial and nonfinancial indices and the number of financial instruments that are linked to such indices. This is a topic that has been the subject of much discussion among tax practitioners, and this Article provides a comprehensive discussion of the tax treatment of such transactions.