Industry lobbying against EU transaction tax intensifies

José Manuel Barroso, European Commission

As news sinks in of the European Commission's (EC) proposal to introduce a punitive financial transaction tax across the European Union, industry associations and market participants are gearing up to fight the regulation, which some fear could seriously impact on the future of the foreign exchange market in London.

The EC unveiled the proposal on September 28, suggesting the exchange of shares and bonds should be taxed at a rate of 0.1% and derivatives contracts at a rate of 0.01%, raising roug