Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Will Italy’s financial transaction tax (FTT) become a blueprint for the regulation of high-frequency trading in Europe? France and Germany have already introduced measures, the UK wants to assess potential impact and, at the EU level, MiFID II includes related proposals. Chris Morris and Marco Ragusa of Ernst & Young explore the recent developments.
High-speed trading tax for Italy
Financial Times, 2 September 2013: A new high-frequency trading tax is being introduced in Italy, despite warnings from banks and brokers over potential damage to liquidity on the nation’s markets. The levy will apply to high speed trading in equities and equity derivatives on Italian Markets. The European Commission has proposed a tax on financial transactions which has gained the backing of 11 Eurozone countries and it is possible that a similar proposal for a tax on high frequency trading may be put forward in the context of the wider European Financial Transactions tax.
How does high frequency trading operate?
High frequency trading has increased substantially in recent years and now accounts for a significant proportion of equity trading activity in the US, UK and Europe. These trading strategies employ sophisticated computer algorithms to search for trading opportunities in the markets, using technology to execute these strategies with very ‘low latency’ between the arrival of market information and the reaction of the computer to place, amend or cancel an existing order.
How have different jurisdictions sought to regulate such trading?
In Europe, there has been much discussion about the effects of high frequency trading and the need for control of such activities whether by way of regulation or taxation. France has already imposed a tax on certain high frequency trading activities and Italy has followed suit with their own version.
What is the scope of the tax on high frequency tax in Italy?
Italy’s FTT includes an additional special levy that applies to ‘high-frequency trading’ transactions, the High Frequency Tax (or HFT). Unlike the FTT, the HFT applies to sell as well as
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234