The document discusses the European Commission's proposal for a Financial Transaction Tax (FTT) and its potential impact on the foreign exchange (FX) market. The FTT would tax securities transactions at 0.1% and derivatives at 0.01%, affecting financial institutions and indirectly impacting non-financial institutions. The proposal could significantly increase transaction costs in the FX market, particularly for swaps and forwards, potentially closing the non-spot FX market in Europe. The document references research by Oliver Wyman on the potential cost increases and discusses the broader implications for market structure and liquidity.
doj/DataSet10/EFTA01449212.pdf
{"title":"Exchange Rate Perspectives: FX and the Financial Transaction Tax","key_people":["Algirdas Semeta"],"document_date":"2013-07-30","document_type":"correspondence","key_locations":["Europe"],"key_organizations":["European Commission","Global FX Division","Global Financial Markets Association","Oliver Wyman","Deutsche Bank Securities Inc."],"reference_numbers":["DB-SDNY-0104519","SDNY_GM_00250703","EFTA01449212"]}