Isda AGM: Clearing will magnify European FTT, warns UniCredit’s Lim
Planned one-basis-point charge will be levied multiple times in cleared trades – and could “kill the market”
Proposals backed by 11 members of the European Union to introduce a financial transaction tax (FTT) will make the central clearing of over-the-counter derivatives prohibitively expensive, according to TJ Lim, global head of markets for Italy's UniCredit, which is headquartered in one of the countries backing the tax.
Speaking at the annual meeting of the International Swaps and Derivatives Association in Singapore today, Lim said the big problem with the FTT is that – unlike existing similar
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