FX swap cost could rise from €279 to €2,779 under EU tax, warns Oliver Wyman

time-money

The introduction of a financial transaction tax (FTT) across the European Union could increase transaction costs by up to 18 times for the most liquid and short-dated parts of the foreign exchange market, according to research published today by consultancy Oliver Wyman.

The FTT, proposed by the European Commission (EC) in September 2011, would impose a tax of 0.1% on equity and bond transactions and 0.01% on derivatives from the start of 2014, raising an estimated €57 billion per year.

Financia

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