AFME released a report that shows how a proposed tax on financial transactions could significantly increase costs in foreign exchange markets. The report, prepared by Oliver Wyman, warns that the tax could drive as much as three-quarters of tax-eligible transactions outside the EU. "This study shows that the proposed tax would in effect penalise Europe's businesses for sensible risk management [who] use FX products to manage currency fluctuations, and also threaten to impose further costs on the investment returns of pension funds and asset managers," said James Kemp, managing director at AFME.

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