FTT | OTC Derivatives Reform News Updates

Cameron Attacks Finance Tax in Defence of the City

By Tim Wallace
Published May 10, 2013 City AM

The Eurozone’s planned financial transaction tax (FTT) took a triple blow yesterday as Britain stepped up its campaign against the charge, German businesses warned it would harm even non-financial firms, and Germany’s finance minister said the tax is not a priority.

Eleven countries back the FTT which would impose a charge on all transactions of shares, bonds and derivatives as long as they originated in the 11 states or if any party involved in the transaction is based there.

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Tags: derivatives, FTT, bonds, financial transaction tax, taxes

Banks Call on BoE to Oppose Financial Transaction Tax

By Patrick Jenkins and Ralph Atkins
Published May 5, 2013 Financial Times

Britain’s banks have called on Sir Mervyn King to speak out against Europe’s planned financial transaction tax, complaining that the FTT will have a “far greater impact than has so far been appreciated”.

In a letter to the Bank of England governor seen by the Financial Times, the British Bankers' Association urges the BoE and other global authorities to “consider whether there may be broader threats to monetary policy, financial stability and the wider economic interests of the EU”.

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Tags: Bank of England, FTT, banks, transaction tax, England, policy, British Bankers Assoication, BoE

FTT Could Kill Europe's OTC Market - ISDA Panel

By Helen Bartholomew
Published April 24, 2013 International Financing Review Asia

The European Commission’s planned Financial Transaction Tax stands to kill the over-the-counter derivatives market in the region and could have far-reaching consequences across the rest of the financial markets, according to TJ Lim, global head of markets at UniCredit.

“I don’t think politicians really understand what they’re getting into,” said Lim, speaking at a panel discussion at the International Swaps and Derivatives Association AGM in Singapore earlier today.

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Tags: Asia, Singapore, ISDA, derivatives, FTT, financial transaction tax

Financial Transaction Tax Contravenes G20 Agreements, Warn Global Markets Bodies

By Louise Armitstead
Published April 18, 2013 The Telegraph

In a bid to see the G20 overrule Brussels, the groups - whose members control trillions of dollars of assets around the world - have asked ministers meeting in Washington to “oppose” the measure. “Now is not the time to experiment with policies that will fragment markets, increase market volatility, harm savings and impede growth,” the letter warns.

The trade bodies argue that the FTT would have “unprecedented extraterritorial impacts, contrary to G20 principles”.

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Tags: G20, FTT, markets, transaction tax, volatility, taxes

MEP Calls to Remove OTC Loophole from European FTT

By Paloma Migone
Published April 12, 2013 The Trade

A loophole created by the exception of OTC derivatives from the issuance principle in the European financial transaction tax (FTT) proposal needs to be closed as it could "prove detrimental" to the tax's success, a European Parliament report says.

The recommendation, released yesterday in a Parliamentary draft report on the European Commission's FTT proposal, would mean swaps issued within the FTT-zone would be taxed when traded, regardless of where the transaction occurs.

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Tags: OTC, European Commission, derivatives, regulation, FTT, financial transaction tax

French and Italian Debt Chiefs Warn on EU Tobin Tax

By Ambrose Evans-Pritchard
Published March 6, 2013 The Telegraph

Both France and Italy have been keen advocates of the new Financial Transaction Tax (FTT) proposed by Brussels last month, claiming that it will raise money and curb speculation. But they may have overlooked the unintended effect on their own borrowing costs.

Maya Atig, acting chief of French debt agency, said the European Commission’s internal documents acknowledge that the FTT could drain liquidity in the bond markets by 15pc, an effect that would push up yield spreads and raise debt costs.

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Tags: France, Italy, Financial Transaction Tax, FTT, bonds, liquidity, taxes, debt

FTT Brings Derivatives Market to Tipping Point

By Jonathan Watkins
Published February 22, 2013 FOW Intelligence

The European Parliament has estimated a potential €20bn could be generated from its levy on derivatives, while a finalised FTT plan from European Commission has brought the controversial toll to the brink of implementation.

Under plans approved by Brussels last week, the 11 participating countries are now able to impose a 0.01% levy on derivatives trading.

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Tags: European Commission, Parliament, derivatives, FTT, trading, levy

Italian Budget Vote Brings Equity Derivatives Tax Closer

By Tom Newton
Published December 20, 2012 Risk

Italy took a step closer to taxing equity derivatives transactions this afternoon, when the country's Senate approved a budget containing amended proposals for a financial transaction tax (FTT). The proposals were watered down last week to mirror the FTT already in force in France but equity derivatives remain in scope – an apparent attempt to close a loophole in the French tax, which only covers cash equities.

"By including a tax on equity derivatives the goal is to avoid any possibility that people can avoid paying tax on cash equity transactions," says Marco Ragusa, a tax partner in Ernst & Young's financial services division in Milan, Italy.

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Tags: derivatives, Italy, FTT, transactions, tax, financial transaction tax, equity

French Trading Tax Lacks Details, Say Banks

By Phillip Stafford
Published July 4, 2012 Financial Times

Some of Europe’s largest broker-dealers are growing concerned that key details for the French financial transactions tax have still to be clarified less than a month before it is due to come into effect.

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Tags: France, Brokers, FTT, Dealers

EU: Transaction Tax Budget Plan Could Save UK Billions

By Laurence Norman
Published March 22 2012 Dow Jones Newswires

The U.K. government could see its direct contribution to the European Union budget reduced by EUR7.6 billion by 2020 if the European Union's proposal for a regional transaction tax to fund Brussels' spending is agreed, Budget Commissioner Janusz Lewandowski said Thursday.

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Tags: European Union, Financial Transaction Tax, FTT

News

Cameron Attacks Finance Tax in Defence of the City

Banks Call on BoE to Oppose Financial Transaction Tax

FTT Could Kill Europe's OTC Market - ISDA Panel

Financial Transaction Tax Contravenes G20 Agreements, Warn Global Markets Bodies

MEP Calls to Remove OTC Loophole from European FTT

French and Italian Debt Chiefs Warn on EU Tobin Tax

FTT Brings Derivatives Market to Tipping Point

Italian Budget Vote Brings Equity Derivatives Tax Closer

French Trading Tax Lacks Details, Say Banks

EU: Transaction Tax Budget Plan Could Save UK Billions

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