The End of Derivatives? What the European Union Model Forebodes, and the Subsequent Stock Market Effect

The End of Derivatives? What the European Union Model Forebodes, and the Subsequent Stock Market Effect

Ronald Stunda

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Ronald A. Stunda

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Valdosta State University

The End of Derivatives? What the European Union Model Forebodes, and the Subsequent Stock Market Effect

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Abstract

In 2011 The European Union Tax Commission proposed the establishment of a Financial Transaction Tax (FTT). The FTT was subsequently implemented in France (8/1/12) and Italy (1/1/13). It is also scheduled to be adopted in 9 other European Union states during 2015. Great Britain has thus far failed to accept such a tax. The purpose of the FTT is twofold; minimize and control derivative trading by taxing it, and raise revenues. Opponents of the FTT have suggested that such a tax would increase volatility (i.e., risk) in the securities market and would also lead to a reduction in security trading and a drop in security prices. These are all reasons why Great Britain has thus far refrained from passing the tax.

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Funding

No external funding was declared for this work.

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The authors declare no conflict of interest.

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How to Cite This Article

Ronald Stunda. 2016. \u201cThe End of Derivatives? What the European Union Model Forebodes, and the Subsequent Stock Market Effect\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C11): .

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GJMBR Volume 15 Issue C11
Pg. 7- 15

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: FOR Code: B13

Submission ReceivedFebruary 6, 2015
Peer Review Double Blind
Handling Editor
Accepted March 2, 2015
Published March 15, 2015

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January 11, 2016

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Total Score: 101

Country: Georgia

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Ronald A. Stunda (PhD/Dr. count: 0)

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