Cameron puts pressure on EU transaction tax

(Source: Reuters)

Prime Minister David Cameron slammed plans for an EU Financial Transaction Tax (FTT) saying that "what is not going to make Europe fairer is financial services re-locating to Hong Kong."

Last month our trading specialist Michael Bow reported on the growing pressure to oppose a measure seen as highly damaging to European markets:

Chief executive of Bats Chi-X Europe, a European-wide stock exchange, Mark Hemsley said the plans could provoke economic tensions between competing financial jurisdictions.

“The financial transaction tax will be extremely harmful for Europe, especially if it stretches into extra-territoriality and becomes the next trade war, as it were,” he said.

The calls, made at roundtable debate at the City Week forum in London yesterday, were echoed by a managing director of the Tokyo stock Exchange, Tomoyoshi Uranishi, who warned that, “most of the trading weight will shift from Europe to Asia and America.”

(Full article)