On  September 15^th, the U.S. Treasury Department issued proposed regulations that would add credit default swaps and non-financial index derivatives to a revised definition of “notional principal contracts.”  The proposed regulations also provide guidance on the definition of swaps and similar agreements within the meaning of section 1256(b)(2)(B) of the Internal Revenue Code of 1986.  For a complete description of the proposed regulations in a recent Orrick Client Alert, please click here.