GFMA has released a report saying a proposed tax on financial transactions in Europe could discourage European funds, businesses and other market participants from using the foreign exchange market. "Given the need for Europe to kick-start economic growth, it is crucial to ensure that European companies of all sizes are able to compete internationally. FX products are central to their ability to do this," said James Kemp, managing director of GFMA's Global FX Division. "In addition, the proposed tax risks becoming a disincentive for businesses to hedge risk, which could increase their earnings volatility and business risk."
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