A House subcommittee plans to conduct a hearing into the tax treatment of derivatives next week.

The House Ways and Means Subcommittee on Select Revenue Measures will hold the hearing on Wednesday.

"The expanding derivatives market is already a $516 trillion global enterprise, only some of which is subject to regulation and transparency," said Chairman Richard E. Neal (pictured), D-Mass, in a statement. "I think it is appropriate for Congress to review the tax rules as they apply to these complex financial products and determine whether changes may be necessary."

The tax consequences for different derivative instruments can be very different even though the instruments are economically similar. The hearing will examine whether there is a need for more uniform tax treatment for various derivative structures.

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