EFTA Document EFTA01449315

30 July 2013 Exchange Rate Perspectives: FX and the Financial Transaction Tax There are questions as to whether the FIT will be levied on the exchange of collateral but at the moment there is no clear exemption. Given that many FX transactions are regularly collateralized, in some cases with the exchange of variation margin on a more than a daily basis, this could involve a substantial increase in transaction costs. If the FIT was levied on initial margin, this would also increase costs.