Vedder Thinking | News Sam Tyfield Quoted in WatersTechnology Article on Financial Transaction Tax
Sam Tyfield, a Partner in Vedder Price's London office and a member of the firm's Investment Services and Finance & Transactions groups, recently discussed the proposed EU financial transaction tax (FTT) in an article published by WatersTechnology. The common FTT aims to raise money to offset losses due to the financial crisis, and to curb high-frequency trading activities. A proposal adopted by the European Commission in February 2013 introduced a 0.1 percent tax on the exchange of shares and bonds, and a 0.01 percent levy on derivatives, generating between €30 billion (US$40 billion) and €35 billion (US$47 billion) a year. However, the finalization of the tax appears to be compromised.
Mr. Tyfield is quoted throughout the article weighing in on the FTT and similar laws and regulations. Two elements on which he comments are the importance of publishing guidance alongside such laws and the need for a detailed cost-benefit study before any further taxes are imposed. "It would be interesting to see a broader and deeper review of algorithmic trading and its costs and benefit to the market," he says. Mr. Tyfield also adds that "a number of different regulations and legislative texts in process at the EU level at the moment, each of which overlaps with the other, and some of which are inconsistent and create ambiguity."
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