(Reuters) - Proposed U.S. tax increases on futures trading would hurt liquidity and are ultimately unlikely to become law, CME Group Inc (CME.O) Executive Chairman Terrence predicted on Thursday.
“I believe that most people on the Hill understand that this would be a detrimental tax,” Duffy said of recent U.S. budget proposals to eliminate favorable tax treatment for individual market makers in futures, and to impose a transaction tax on trading.
“I do think that will not prevail,” Duffy told analysts on a conference call to discuss first-quarter earnings.
CME Group is the world’s largest operator of futures markets.
Reporting by Ann Saphir; Editing by Gerald E. McCormick