AIMA has published a research note on the proposed FTT. AIMA says that a financial transaction tax could severely undermine the EU single market by causing a significant decrease of cross-border trading in the EU. It also notes that traders that operate on a high turnover strategy may find the tax undermines their operations by encouraging longer holding periods. It is also concerned investment managers would invest less in equities and more in derivatives because of the bias in the proposed rates, and that the foreign exchange markets would transform, as banks would want to deal in the markets in a different way to the present method. Finally, it is worried business could migrate away from the EU and transform into less transparent forms. (Source: AIMA Publishes FTT Note)