The document discusses the European Commission's proposal for a Financial Transaction Tax (FTT) to be implemented by 11 EU member states. The FTT would tax securities transactions at 0.1% and derivatives at 0.01%, affecting financial institutions involved in transactions where one party is in a participating state. The FTT could significantly increase transaction costs in the FX market, potentially closing the non-spot FX market in these states. It may also conflict with global financial reform efforts. The European Council approved negotiations for the FTT on January 22, 2013, after an EU-wide FTT proposal in 2011 failed to gain unanimous support.
doj/DataSet10/EFTA01449311.pdf
{"title":"Exchange Rate Perspectives: FX and the Financial Transaction Tax","document_date":"2013-07-30","document_type":"financial","key_locations":["European Union"],"key_organizations":["European Commission","European Council","Deutsche Bank Securities Inc."]}