EU acknowledges concerns about FTT effect on clearing

06/3/2013 | Risk.net (subscription required)

EU states have voiced concern that a proposed tax on financial transactions could encourage participants in the over-the-counter derivatives market to forgo clearing. "We can confirm that we are aware about the concerns that have been expressed about possible effects of the tax on complex transactions involving several intermediaries," said a spokesman for the European Commission's Taxation and Customs Union. Czech officials have warned that the tax could send central counterparties "directly into insolvency."

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