Commissioned by Marex Spectron, a leading broker of financial products in the commodities sector, and building on Oxera’s previous work, this independent study provides a coherent framework to analyse the mechanisms through which the FTT would affect economic activities. The study seeks to further the understanding of the impact of the proposed FTT by addressing two important gaps in the existing literature which result in the need for:

• quantitative estimates of the economic impacts that seek to take into account the potential impact of the tax on trading behaviour, particularly regarding the volume of trading with the tax in place;

• independent estimates of the broader macroeconomic impact of the tax, bringing together the wide range of economic impacts into a single consistent and comprehensive appraisal.

This Oxera study provides findings that seek to address these important gaps in the existing research.