New US tax rules could hamper ETN market, dealers warn
IRS’s forthcoming Section 871(m) rules could inadvertently capture legacy ETNs
US tax regulations aimed at preventing withholding tax avoidance on equity derivatives may inadvertently capture a huge chunk of the exchange-traded notes (ETN) market, including those initially issued many years prior to the rule's implementation, dealers have warned.
Section 871(m) of the Internal Revenue Code, which comes into full effect in January 2017, imposes a 30% withholding tax on
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