15 December 2017
Paris
Reporter: Jenna Lomax

France raises spectre of European financial transactions tax


The securities lending industry’s long-running concerns over the negative effect of a European financial transaction tax on revenues are at risk of being disregarded by French officials looking to tackle climate change.

In an opinion piece published in Europe1 this week, France’s finance minister Bruno Le Maire, foreign minister Jean-Yves Le Drian, environment minister Nicolas Hulot and higher education minister Frederique Vidal, claimed the tax could raise up to €5 billion ($5.9 billion) per year by 2020.

“We will push for this tax to become applicable in Europe and will ask everyone to take part in this solidarity effort,” the officials explained.

French ministers added their voices to that of French President Emmanuel Macron, who committed to push for a European financial transaction tax as long as it was effective in July.

He added that the decision was still subject to whether Britain would have access to EU financial markets after Brexit.

Macron said that otherwise, firms would move to London where the tax will not apply.

The introduction of financial transactions tax has been repeatedly raised and then shelved since 2012 when talks between 11 EU member states initially began.

In 2015, when the implementation of the tax was being discussed, the International Securities Lending Association worried it would mean securities lending transactions would result in a large reduction in securities lending activity in the countries affected as the economics of these short term, low risk and return transactions, would be dwarfed by the tax.”

“This would have very negative implications for the functioning of the wider financial markets, and for the successful delivery of a European capital markets union.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
IHS Markit names Stuart Cornock as associate sales director
22 January 2018 | London | Reporter: Zsuzsa Szabo
Cornock has moved from Clearstream to IHS Markit
New York Fed confirms repo rate complaints
22 January 2018 | New York | Reporter: Zsuzsa Szabo
An audit of the Federal Reserve Bank of New York uncovered that the effective federal funds rate and overnight bank funding rate are in compliance with principles for financial benchmarks
James Burron has left AIMA
22 January 2018 | Toronto | Reporter: Jenna Lomax
James Burron has left the Alternative Investment Management Association
Hong Kong securities and derivatives markets break records in 2017
19 January 2018 | Hong Kong | Reporter: Jenna Lomax
Market capitalisation of Hong Kong’s securities market reached over $33 billion, while in the derivatives market total options trading reached over 137 thousand contracts
ESMA updates MiFID II transparency calculations
19 January 2018 | Paris | Reporter: Zsuzsa Szabo
ESMA has revised its transitional transparency calculations for equity and bond instruments reported under MiFID II
S&P reaffirms OCC’s AA+ rating
19 January 2018 | Chicago | Reporter: Jenna Lomax
S&P has reaffirmed OCC’s financial strength rating of “AA+/stable”
Clearstream to include Kazakh government bonds
19 January 2018 | Astana | Reporter: Zsuzsa Szabo
Kazakhstan treasury bonds are to be available through Clearstream