To amend the Internal Revenue Code of 1986 to impose a tax on over-the-counter derivatives transactions, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transparent Markets Act of 2009''.

SEC. 2. OVER-THE-COUNTER DERIVATIVES TRANSACTION TAX.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter B the following new subchapter:

          ``Subchapter C--Tax on Over-the-Counter Derivatives

``Sec. 4475. Tax on over-the-counter derivatives.

``SEC. 4475. TAX ON OVER-THE-COUNTER DERIVATIVES.

    ``(a) Imposition of Tax.--There is hereby imposed a tax on each 
covered derivative transaction.
    ``(b) Rate of Tax.--The rate of such tax shall be equal to 0.25 
percent of the fair market value of the underlying property with 
respect to, or the notional principal amount of, the derivative 
financial instrument involved in such transaction.
    ``(c) By Whom Paid.--All parties to a covered derivative 
transaction shall be jointly and severally liable for the tax imposed 
on such transaction by this section.
    ``(d) Covered Derivatives Transaction.--For purposes of this 
section, the term `covered derivative transaction' means becoming a 
party to a derivative financial instrument which is not traded on (or 
subject to the rules of) a qualified board or exchange (as defined in 
section 1256(g)(7), determined without regard to subparagraph (C) 
thereof).
    ``(e) Derivative Financial Instrument.--For purposes of this 
section--
            ``(1) In general.--The term `derivative financial 
        instrument' means any option, forward contract, short position, 
        notional principal contract, credit default swap, or similar 
        financial instrument in any--
                    ``(A) share of stock in a corporation,
                    ``(B) partnership or beneficial ownership interest 
                in a widely held or publicly traded partnership or 
                trust,
                    ``(C) note, bond, debenture, or other evidence of 
                indebtedness,
                    ``(D) commodity which is actively traded (within 
                the meaning of section 1092(d)(1)),
                    ``(E) any foreign currency, or
                    ``(F) any specified index.
            ``(2) Specified index.--The term `specified index' means 
        any one or more or any combination of--
                    ``(A) a fixed rate, price, or amount, or
                    ``(B) a variable rate, price, or amount
        which is based on any current, objectively determinable 
        information which is not within the control of any of the 
        parties to the contract or instrument and is not unique to any 
        of the parties' circumstances.
    ``(f) Method of Collection.--
            ``(1) In general.--The tax imposed by subsection (a) shall 
        be collected on the basis of an annual return.
            ``(2) Content of return.--Such return shall include the 
        following information:
                    ``(A) A description of the derivative financial 
                instrument involved in such transaction.
                    ``(B) The parties to the covered derivatives 
                transaction (and each such party's tax residence).
                    ``(C) The fair market value of the underlying 
                property with respect to, or the notional principal 
                amount of, the derivative financial instrument involved 
                in such transaction.
                    ``(D) A description of any underlying asset or 
                specified index with respect to such transaction, 
                including a description of how each party to such 
                transaction characterizes any such asset for tax 
                purposes.
                    ``(E) A description of any provision for physical 
                settlement of such transaction.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including the following:
            ``(1) Prescribing the time for filing the annual return of 
        tax imposed under subsection (a) and the time for payment of 
        such tax.
            ``(2) Excluding or including certain transactions from such 
        tax as may be consistent with the purposes of this section.
            ``(3) Guidance for determining such tax if the fair market 
        value or notional principal amount is unclear on the face of 
        the instrument.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
such Code is amended by inserting after the item relating to subchapter 
B the following new item:

         ``subchapter c. tax on over-the-counter derivatives''.

    (c) Report.--
            (1) In general.--Not later than 180 days after the first 
        deadline established by the Secretary of the Treasury for 
        filing a return of the tax imposed under section 4475 of the 
        Internal Revenue Code of 1986, and each deadline for filing 
        such return thereafter, the Secretary shall submit a report to 
        Congress.
            (2) Content.--Such report shall include--
                    (A) a description and a statistical analysis of the 
                information included on the returns of such tax for the 
                previous filing period, and
                    (B) a detailed analysis of the scope and nature of 
                over-the-counter derivatives markets and the 
                feasibility and advisability of regulating such 
                markets.
    (d) Effective Date.--The amendments made by this section shall 
apply to transactions entered into on or after the date of the 
enactment of this Act.

Summary: Transparent Markets Act of 2009 - Amends the Internal Revenue Code to impose an excise tax on over-the-counter derivative transactions. Sets the rate of such tax at 0.25 of the fair market value of the underlying property with respect to, or the notional principal amount of, the derivative financial instrument involved in such transactions. Defines derivative financial instrument as any option, forward contract, short position, notional principal contract, credit default swap, or similar financial instrument in any share of corporate stock, interest in a widely held or publicly traded partnership or trust, debt instrument, commodity which is actively traded, foreign currency, or specified index.