AFME has commissioned studies of the FTT proposal in order to build the evidence base as to the likely impact of an FTT.
Based on these and other findings, AFME remains firmly opposed to the introduction of an FTT and urges the 10 participating Member States to reconsider the proposal given its negative impact
In the meantime, France introduced its own domestic FTT on 1 August 2012. The French FTT includes a tax on the acquisition of shares in listed French companies with a market capitalisation of over 1bn euros, a tax on the acquisition of uncovered CDS on EU sovereign debt and a tax on cancelled or modified orders to capture HFT activity. Given that the legislation for this tax has been passed, AFME has concentrated on assisting members with implementing the legislative requirements. In particular, we developed an AFME French FTT Indemnity Protocol
which was published on 1 August 2012. This original Protocol will be terminated with effect from 1 November 2017 and be replaced by a new French FTT Indemnity Protocol.
In Italy, a domestic FTT was enacted and entered into force on 1 March 2013. The Italian FTT applies to the transfer of Italian equities with a market capitalisation of over 500m euros and to certain equity derivatives. AFME has concentrated on assisting members with implementing the legislative requirement. In particular, we have developed an AFME Italian FTT Equity Indemnity Protocol
and an AFME Italian FTT Equity Derivatives Protocol