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The impact of the Financial Transaction Tax on the European repo market
Collateral damage: the impact of the Financial Transaction Tax on the European repo market and its consequences for the financial markets and the real economy

The proposed EU Financial Transaction Tax would cause the short-term repo market in Europe to contract by an estimated amount of at least 66%, with serious negative consequences for other financial markets and the real economy, according to a study commissioned by the European Repo Council* of the International Capital Market Association. The study, authored by Richard Comotto, Senior Visiting Fellow at the ICMA Centre, Henley Business School, University of Reading, argues that it is essential for secured financing, such as repo and securities lending, to be exempted from the FTT to ensure an efficient debt capital market and support the continued collateralisation of the financial markets.

The repo market is crucial to the efficient functioning of almost all financial markets; it provides cost effective and secure funding for professional financial intermediaries, which in turn lowers the cost of financial services to investors and issuers.

Click here to view the report
Published 8 April 2013

Click here to view the presentations given at the press conference.


A supplementary note on the systemic importance of collateral and the role of the repo market

Click here to view the supplementary note

Published 7 May 2013




16 April 2013
Response to comments on the ICMA ERC’s* 8 April report on the Commission’s proposal for Financial Transaction Tax (FTT) under Enhanced Cooperation

21 May 2013
Joint associations’ letter sent to EU Finance Ministers respectfully urging reconsideration of the scope and structure of the proposed FTT

21 November 2013
Financial transaction tax: The impacts and arguments – A literature review
, performed by PwC


*On 4 December 2015, the name of the European Repo Council (ERC) was changed to the European Repo and Collateral Council (ERCC).

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