Over-the-counter derivatives are exempt from the issuance principle of Europe's proposed financial-transaction tax. Anni Podimata, a member of the European Parliament, recommends closing the loophole. "The FTT should have a wide scope even with the issuance principle including OTC derivatives in order to preserve a level playing field," she said. "The exemption of OTC derivatives opens a loophole, which could prove detrimental for the success of the tax."

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