ACI's concern for the introduction of a financial transactions tax
(Thomson Reuters ONE) -
Press Release
Paris/London/Vienna, October 4(th) 2011
ACI's concern for the introduction of a financial transactions tax
It is with concern that the ACI The Financial Markets Association (ACI) notes
the European Union proposal for the introduction of a financial-transactions tax
(FTT) that would take effect in 2014. In the annual State of the Union address,
José Manuel Barroso, the European Commission president claimed that this fiscal
measure, which would apply a tax of 0.1 percent on trading of stocks and bonds,
with a 0.01 percent rate for derivatives contracts, could raise about 57 billion
euros ($78 billion) a year and would apply throughout the 27- nation bloc.
The ACI's concerns are that unless such measures are globally applied, there is
potential for fiscal arbitrage and such measures, at a time when the G20 is
seeking to implement harmonisation of global financial markets regulation, are
not conducive to financial market stability or cohesion, and rather could be
detrimental to European economies and financial markets. The ACI fears that
rather than ensuring that the financial sector makes a fair contribution at a
time of fiscal consolidation, the FTT would affect market behaviour and
financial industry business models detrimentally.
With regard to the FX markets and instruments, and the extent to which these
would be impacted by the FTT, the ACI and its Foreign Exchange Committee
(ACIFXC) is of the opinion that these instruments are broadly used for hedging
by end users such as corporations and real money funds. Despite the EU
commission's statement that the proposed tax would be aimed at banks, investment
firms, insurance companies, pension funds, stockbrokers and hedge funds, among
other types of financial firms, the proposed tax would be passed on through
widening the current very fine spreads that benefit businesses and pension
funds. Additionally since the FX market is a payment mechanism, the imposition
of a pan EU FTT would increase costs of doing cross border business. Therefore,
the EU FTT would be an obstacle for global trade, global financing and growth at
a time when the EU member states need growth and economic re-generation.
ACI The Financial Markets Association
ACI is a leading non-profit but also non-political association of wholesales
financial market professionals. Members of ACI are in a large part engaged
within the financial trading or sales environment in the global financial
markets representing the Foreign Exchange, Interest Rate Products and other
Securities, Banknotes & Bullions, Precious metals and Commodities and their
various kinds of Derivatives. ACI counts some 13,000 international members from
more than 60 countries
ACI The Financial Markets Association
8. rue due Mail / F-75002 Paris
T. +33 (0) 1 42 97 5539
F. +33 (0) 1 42 97 5116
managingdirector(at)aciforex.org
www.aciforex.org
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Source: ACI - The Financial Markets Association via Thomson Reuters ONE
[HUG#1551920]
Datum: 04.10.2011 - 12:22 Uhr
Sprache: Deutsch
News-ID 72470
Anzahl Zeichen: 3960
contact information:
Kategorie:
Business News
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