Today, FIA and FIA PTG joined eight trade associations in raising concerns about the impact S. 2621, the Modernization of Derivatives Tax Act, may have on derivatives markets and the end-users that rely on them.
The Modernization of Derivatives Tax Act would substantially alter the tax treatment of derivatives and fundamentally alter the market structure governing these products, likely impacting equities markets in the process. The added complexity, uncertainty, and costs may discourage investors from participating in derivatives markets. These effects would impact commodity producers, end-users, and Main Street Americans that rely on deep, liquid, and efficient markets for risk management purposes.
For these reasons, the trade associations urged Congressional leaders not to enact The Modernization of Derivatives Tax Act.
