CME Group Opposes Financial Transaction Taxes (FTT)

Once again, several jurisdictions have proposed imposing a tax on trades made on financial exchanges. These taxes been proven repeatedly to be failures in regions where they have been implemented, damaging business and commerce without raising revenues. Taxing financial exchanges and their end users only harms consumers, agricultural producers, businesses and the broader economy.

CME Group strongly opposes any legislation to tax financial transactions at the local or national level because it will cost consumers far more than it could ever raise in revenues. Every business that uses financial markets to manage risks, from local farmers and ranchers to global companies in every market sector, would face higher costs. And as a result, consumers would pay more for food, gas, airline tickets and other products they use every day.

Studies Highlighting the Damaging Impacts of a Financial Transaction Tax

Multiple studies have concluded that transaction taxes are economically damaging to the jurisdictions that have imposed them, causing declines in trading volume and liquidity, increased costs, and market shifts to other jurisdictions with no transaction tax. 

Read the Studies

United States

Proposals for a financial transaction tax have been suggested at the state and local level but have not yet been passed into law. 



Proposals for a financial transaction tax have already been wisely rejected by all 28 EU nations. While some discussions continue at this time, the idea looks likely to fail.