A renewed push by a group of 11 European countries could see a controversial Financial Transaction Tax introduced across the EU in less than 12 months, with harmful effects on securities markets and extraterritorial repercussions – even in countries which have not signed up, such as the UK.
A European financial transaction tax on equities and derivatives trades could be damaging for European liquidity levels and the City of London, but it also looks set to impose serious operational challenges for banks, brokers and their buy-side clients following the failure of a UK appeal to the European Court of Justice earlier this year.
The introduction of a financial transaction tax could mean London losing a swathe of banking business to financial centres with a lighter regulatory regime, such as Hong Kong or Singapore not to mention the logistical and technical challenges for banks.
Market participants have condemned a proposal in the UK House of Commons that calls for the UK government to consider implementing a tax on high-frequency trading activity in the country.
GBST‘s Capital Markets and Six Financial Information have teamed up to enhance GBST´s solution for the Financial Transaction Tax that some European countries are introducing.
Further uncertainty in the Eurozone has been prompted by unconfirmed reports that the European Commission is considering watering down the 11-nation proposals for a financial transaction tax – but any revisions may have to wait until September, following elections in Germany, according to sources close to the subject.
The funds industry is going through a time of great change, with a combination of regulation, cost pressure, consolidation and globalisation forcing many participants to take a close look at their business and operating models and consider what their future role in the ecosystem should be. For some, this means outsourcing activities, creating opportunities for […]
