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

Ronald A. Stunda
Ronald A. Stunda * §
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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.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

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

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
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Classification
GJMBR-C Classification FOR Code: B13
  • Submission ReceivedFebruary 6, 2015
  • Peer Review Double Blind
    Handling Editor
  • Accepted March 2, 2015
  • Published March 15, 2015
Version of record

v1.2

Issue date
January 11, 2016

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

Ronald Stunda
Ronald Stunda Valdosta State University
  • Submission ReceivedFebruary 6, 2015
  • Peer Review Double Blind
    Handling Editor
  • Accepted March 2, 2015
  • Published March 15, 2015