Securities Group Urges Tweaks in Currency Gain and Loss Rules

The Treasury Department should adjust rules on the treatment of foreign-currency gains and losses by businesses’ subsidiaries to address the concerns of securities companies, a trade group said.

Implementation of final and proposed regulations on how “qualified business units” under Section 987 should handle currency transactions should be refined “in a way that best reflects the realities of our industry,” the Securities Industry and Financial Markets Association said in a comment letter Sept. 5. QBUs are units of larger companies that do business separately and maintain their own books and records.

SIFMA asked Treasury to add an option allowing taxpayers ...