Nature of Securities

Securities-based derivatives contract means any derivatives contract of which the underlying or any of the underlying is a security or a securities index. 

According to the SFA

“securities‑based derivatives contract” means any derivatives contract of which the underlying thing or any of the underlying things is a security or a securities index, but does not include any derivatives contract that is, or that belongs to a class of derivatives contracts that is, prescribed by regulations made under section 341;