Outgoing governor of the Bank of England Sir Mervyn King has slammed the idea of a financial transaction tax (FTT), saying that he can't find any European central banker who thinks it is a good idea.
Sir Mervyn said that there was "enormous sceptiscism even from quarters behind" the tax, and that he understood why some were not willing to be vocal in their opposition. There are concerns that many are self-censoring their concerns about the measure as it is not politically safe to oppose taxes on activities seen to relate to banking.
Warnings that taxes could reduce volumes and as such volatility as well as seeing business flee affected countries have so far gone unheeded, as the European Union seeks to press ahead with the measure.
Mark Hemsley, chief executive of BATS Chi-X Europe:
The number one example of that is the financial transaction tax which in the end will be extremely harmful for Europe, especially if it stretches into extra-territoriality and becomes the next trade war, as it were.
Eduardo Refinetti Guardia, chief financial officer of BM&F Bovespa exchange:
The impact on the capital markets was very negative. We started to see companies listing in the U.S. At the end of the day what really happens is that you export your markets.
Tomoyoshi Uranishi, senior executive at the Tokyo Stock Exchange:
[The tax would be] a very bad influence over the world economy.
If the FTT is introduced extensively, I think most of the trading weight will shift from Europe to Asia and America.