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Does it matter what sort of relevant contract you have?

Any contract which is generally thought of as being a derivative will almost certainly be either an option, a future or a contract for differences (CFD). In most cases where, for example, you are looking at ordinary interest rate, currency or commodity contracts, you will not have to worry into which category a relevant contract falls.

The distinction becomes relevant where any of the following apply:

You are looking at a contract whose underlying subject matter is intangible fixed assets - see CFM50720. Intangible fixed assets are an excluded subject matter for options and futures, but not for CFDs.

The contract only satisfies the ‘accounting conditions� in CTA09/S579 because it falls, or may fall, within CTA09/S579(2)(b). This provision admits CFDs with certain sorts of underlying subject matter into the Part 7 regime, but not corresponding options or futures - see CFM50270.

The contract is an embedded equity derivative - provisions relevant to the derivatives embedded in convertible, exchangeable or asset-linked securities depend on whether the embedded derivative is an option or a CFD (see CFM52500 onwards).

Cases in which the special provision at CTA09/S593 applies. This section deals with the unusual case where part of the underlying subject matter of a contract is ‘excluded� and part is not (CFM50860). It applies to options and futures only.

Futures and options on the one hand, and CFDs on the other, are mutually exclusive categories. A future or an option cannot also be a CFD (CTA09/S582(2)).