The governments of Europe continue to consider the application
of a financial transaction tax ("FTT") on bond, equity
and derivatives transactions.1 On February 14, 2013, the
European Commission ("EC") published a directive (the
"FTT Directive") that would apply to eleven member-states
through an "enhanced cooperation procedure" approved by
the European Parliament on December 12, 2012.2 Most
recently, on July 3, 2013, the European Parliament, which has a
consultative role in the process,3 approved the FTT
Directive, subject to several proposed amendments.
At its heart, the FTT Directive would continue to provide for
participating member-states setting tax rates of at least 0.1% of
the consideration paid or owed in a financial transaction other
than a derivative transaction, and at least 0.01% of the notional
amount of a derivative transaction. However, the European
Parliament proposed, among others, the following amendments to the
FTT Directive: (i) having lower
