The Tobin Tax: Reason or Treason?
London is the world’s leading centre for foreign exchangetrading. In 2010, foreign exchange turnover in the UK reachedover $1.8 trillion daily, accounting for 36.7% of the globaltotal. Strong relationships with hedge funds, prime brokerageand the capital markets result in twice as many US dollarsbeing traded on the UK foreign exchange market than in theUS itself, and more than twice as many Euros being tradedin London than in the whole of the Euro-areas combined.Approximately half of European investment banking activityis conducted through London, with over 80% of Europe’sHedge fund assets being managed in London.
The Tobin tax: Reason or treason?Quite simply, the City matters.