Dealers vent frustration at Section 871(m) hold-up
US dividend-equivalent tax change will hit high-delta products with withholding tax
Dealers in the equity derivatives market are sweating on the imminent publication of fresh regulations altering the tax treatment of number of equity-linked instruments (ELIs), amid fears the market for delta one products could be severely dented if proposed provisions are not relaxed.
The US Treasury had been expected to publish regulation extending Section 871(m) of the US Hiring Incentives to Restore Employment (Hire) Act for ELIs in early May, but the final rules are yet to emerge.
If the
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