DUBLIN Oct 16 Deutsche Boerse's
chairman Joachim Faber appealed for politicians to reconsider
introducing a transaction tax, arguing it will punish financial
market players without proving to be an effective policy tool
for stopping bank failures.
Speaking in Dublin on Tuesday, the German executive said
such a tax, "will not rescue the banks."
Policymakers in Germany, Italy and Spain are pushing to
introduce a tax on trades as a way to help fund bank rescues
without needing to resort to taxpayer funds.
The Tobin Tax, named after economist James Tobin who mooted
the levy in 1972 to curb market volatility, has become a
political symbol of a wider desire to make banks and hedge funds
pay for the financial crisis.
"We have still the belief it will be recognised that if you
want to really punish banks, that you really don't necessarily
want to introduce an instrument which is punishing 70 percent
others," Faber said, adding he was hopeful that continued
dialogue with policymakers would help find a "sensible
Separately, Faber said the German stock and derivatives
exchange operator can remain competitive even as rivals like CME
Group encroach on European turf with new offerings.
"I think there are plenty of opportunities to grow, even if
one of the other foreign players like CME come to the European
derivative markets, I don't think that that would have a
material impact," Faber said.
In August, U.S-based arch rival CME Group applied to
Britain's Financial Services Authority to open a London-based
market offering currency futures.
Earlier this year, the European Commission blocked Deutsche
Boerse from taking over NYSE Euronext, scuppering efforts by the
Frankfurt-based exchange operator to grow through