It has been recommended by a UK Parliamentary Committee to consider the “feasibility, benefits and risks” of a Financial Transaction Tax (FTT) on High Frequency Trading (HFT), despite the Government’s strong opposition to such a tax within the European Union.
The recommendation has been made by the Business, Innovation and Skills Committee as part of its response to the Key Review of UK Equity Markets and Long-Term Decision Making, which was published last year.
The Committee give reference of a science report to 2011 Government Office which stated that the financial crashes caused by the HFT in the past, and that the Government should take steps by regulations and tax incentives to address the issue.
The Government of UK recently launched a legal challenge in Europe against a proposed FTT zone within the EU as having detrimental knock-on effects for the UK.
