Transaction Tax May Usher In Agency Trading

The proposed financial transaction tax could fundamentally restructure European capital markets from a principal-based model to an agency one, according Simon Gleeson, a partner at Clifford Chance in London. Under current proposals, 11 European Union member states will implement a 0.1% tax on the exchange of shares and bonds, and 0.01% on derivative contracts, effective Jan. 1, 2014.