Drop in Hong Kong Prada share volume highlights dangers of transaction taxes

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Average daily turnover of Prada shares traded on the Hong Kong Exchange has fallen from around $28 million in February to $18.6 million over March and April after the introduction of the Italian financial transactions tax (IFTT) on March 1. The extraterritorial reach of the tax, charged at 0.1% per transaction on regulated platforms, is limited to equity instruments issued by firms established in Italy and so in Hong Kong applies only to shares of Italian fashion company Prada. Mark Austen, H