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French financial transaction tax (French FTT)

General aspects

The French Financial Transaction Tax (French FTT) applies, subject to the statutory exemptions, to acquisitions for consideration of qualifying equity securities or assimilated securities where:

the acquisition results in a transfer of ownership;
the securities are admitted to trading on a French, European or foreign regulated market;
the issuer has its registered office in France; and
the issuer’s market capitalization exceeded EUR 1 billion on 1 December of the year preceding the relevant tax year.

Only acquisitions are subject to the French FTT; disposals are not taxable as such.

The French Tax Authority publishes and updates the list of French companies meeting the applicable market-capitalization threshold. Market participants should refer to the official list applicable to the relevant tax year. The applicable list and further guidance are available on the website of the French Tax Authority.

Qualifying equity securities and assimilated securities may include:

ordinary and preference shares;
investment certificates and voting-right certificates;
certain instruments giving or potentially giving access to capital or voting rights;
certain convertible, exchangeable or share-linked securities; and
depositary receipts representing qualifying French equity securities, including relevant American Depositary Receipts.

Whether a particular instrument is in-scope must be assessed based on the applicable statutory requirements and administrative guidance.

Derivative contracts are not subject to the French FTT on acquisitions of securities solely because they reference an in-scope security. However, the exercise, conversion, exchange or settlement of an option, derivative or other financial instrument may result in a taxable acquisition where qualifying securities are delivered and ownership is transferred, unless a statutory exemption applies.

Acquisitions of newly issued securities may qualify for the primary-market exemption, subject to the applicable legal requirements.

Certain corporate actions may result in an acquisition and transfer of ownership of qualifying securities. Such acquisitions may be subject to the French FTT unless a statutory exemption applies.

Which transactions are affected?

The French Financial Transaction Tax currently comprises:

a tax on acquisitions of qualifying equity securities and assimilated securities issued by certain French companies; and
a separate tax on certain cancelled or modified orders in connection with high-frequency trading.

This publication primarily addresses the French FTT applicable to acquisitions of qualifying securities in connection with Eurex Clearing AG’s clearing activities.

What is the tax rate and tax base for French FTT?

The French FTT on acquisitions of qualifying equity securities and assimilated securities is levied at a rate of 0.4% for acquisitions carried out on or after 1 April 2025. The tax is generally calculated based on the acquisition value of the qualifying securities.

For acquisitions of listed securities, the taxable basis is generally the acquisition price determined in accordance with the applicable French FTT rules.
The separate French tax on certain high-frequency trading activities is subject to its own statutory scope, calculation method and requirements and is not addressed further in this publication.

Who is liable to tax?

The French FTT applies to qualifying acquisitions irrespective of the purchaser’s nationality or place of residence and irrespective of the location of the trading venue.

The purchaser must be distinguished from the statutory taxpayer responsible for declaring and paying the French FTT. Depending on the transaction chain, the statutory taxpayer is generally the relevant investment service provider or, in certain cases, the purchaser’s securities account holder.

The separate tax on certain high-frequency trading activities is subject to its own rules concerning the taxable person and is not addressed further in this publication.

What is the meaning of "acquisition"?

Transactions may be taxable if and when they result in a transfer of ownership of qualifying securities. In general:

the transfer of ownership takes place when the relevant securities are credited to the purchaser’s securities account;
the French FTT is determined by reference to the settlement of the relevant acquisition; and
the applicable netting rules may result in the tax being calculated by reference to the purchaser’s net buying position in the relevant security.

Transfers of qualifying securities in connection with collateral arrangements may fall outside the scope of the French FTT or qualify for an exemption, depending on the structure of the relevant arrangement and the applicable statutory requirements.

Are there any exemptions from the financial transaction tax in equities?

In principle, acquisitions within the scope of the French FTT are taxable unless one of the statutory exemptions applies. These exemptions include, subject to the respective legal requirements:

acquisitions connected with the issuance of securities on the primary market;
qualifying acquisitions made by clearing houses or central securities depositories;
acquisitions connected with qualifying market-making activities;
acquisitions carried out under qualifying liquidity agreements;
qualifying intra-group transactions;
qualifying securities lending and repurchase transactions;
certain acquisitions relating to employee savings schemes or employee investment arrangements; and
certain acquisitions of convertible or exchangeable bonds, without prejudice to the possible taxation of a subsequent acquisition of shares upon conversion or exchange.

The availability of an exemption must be assessed based on the facts and circumstances of the relevant transaction and the applicable legal requirements. Eurex Clearing AG does not determine whether an exemption is available to a Clearing Member, Trading Member, client or other market participant.

Persons or entities operating under foreign law may qualify for an exemption where the relevant activities or transactions satisfy the applicable equivalence requirements and the other conditions under French law.

Who is the statutory taxpayer responsible for declaring and paying the French FTT?

The statutory taxpayer is the person or entity legally responsible for determining, declaring and paying the French FTT.

Where an investment service provider executes a purchase order on behalf of a client or carries out an acquisition for its own account, the investment service provider is generally the statutory taxpayer, irrespective of its place of establishment.

Where several investment service providers are involved in the execution chain, the statutory taxpayer is generally the first investment service provider that receives the final purchaser’s purchase order for execution. Where an entity merely receives and transmits an order and is not authorized to execute it, the executing investment service provider may be the statutory taxpayer.

Where no investment service provider is involved in the execution of the transaction, the purchaser’s securities account holder may be responsible under the applicable rules.

The statutory taxpayer remains responsible for identifying taxable transactions and fulfilling the applicable declaration and payment obligations.

Does Eurex Clearing AG deduct, declare or pay the French FTT?

Eurex Clearing AG does not deduct the French FTT from the relevant acquisition amount and does not assume the responsibility of a Clearing Member or another market participant for determining, declaring or paying the tax.

Eurex Clearing AG benefits from the statutory exemption applicable to qualifying acquisitions by clearing houses. Where Eurex Clearing AG forms part of the relevant transaction chain, it provides transaction information available within the clearing process in accordance with the applicable legal and operational requirements.

The relevant statutory taxpayer remains responsible for:

determining whether a transaction is within the scope of the French FTT;
identifying and substantiating any applicable exemption;
ensuring the completeness and accuracy of the relevant information;
submitting the required declarations; and
paying the French FTT within the applicable deadlines.

Clearing Members remain responsible for identifying and fulfilling any obligations applicable to their own transactions and, where relevant, transactions executed or cleared for their clients or Trading Members.

The tax treatment applicable to Eurex Clearing AG in its capacity as CCP does not determine the tax treatment or obligations of a Clearing Member, Trading Member or any of their clients.

What are the responsibilities of Clearing Members?

Each Clearing Member remains responsible for assessing the French FTT treatment of its own activities and transactions. This includes determining whether a transaction is within the scope of French FTT, whether an exemption applies and whether any reporting, notification or payment obligation arises.

The French FTT treatment applicable to Eurex Clearing AG in its capacity as CCP does not determine the tax treatment or obligations of a Clearing Member, Trading Member or any of their clients.

Disclaimer

This publication is provided for general information purposes only and does not constitute legal or tax advice. It does not provide a complete description of the French Financial Transaction Tax or of all potentially applicable exemptions, reporting requirements or payment obligations.

Clearing Members and other market participants remain responsible for assessing their own tax position, identifying the obligations applicable to their transactions and obtaining independent professional advice where appropriate.

Eurex Clearing AG does not assume responsibility for the tax treatment applied by a Clearing Member, Trading Member, client or other market participant. Applicable laws, administrative guidance and the list of in-scope securities may be amended from time to time.

Clearing Members should seek independent legal or tax advice where appropriate.

Spanish Financial Transaction Tax (Spanish FTT)

General aspects

Spain imposes a financial transaction tax (hereinafter, "Spanish FTT") on acquisitions for valuable consideration of shares of Spanish companies with a market capitalization exceeding EUR 1 billion on 1 December of the year preceding the acquisition. Those shares are admitted to trading on a Spanish market, a regulated market of another EU Member State or an equivalent third-country market. The Spanish FTT is generally levied at a rate of 0.2% on the taxable acquisition price, subject to the applicable statutory rules for determining the taxable base.

Which securities are in scope of the Spanish FTT?

The taxable event is the acquisition for valuable consideration of in-scope Spanish shares or depositary receipts representing such shares, provided that the applicable statutory requirements are met.

The relevant shares must be issued by a Spanish company whose market capitalization exceeded EUR 1 billion on 1 December of the preceding year¹. The Spanish Tax Agency publishes the list of Spanish companies meeting this capitalization threshold for the following calendar year. The capitalization criterion generally applies for the following calendar year irrespective of subsequent changes in market capitalization during that year.
The relevant shares must be admitted to trading on a regulated market, which may be a Spanish market, a market of another European Union Member State, or an equivalent market in a third country.
Acquisitions for valuable consideration of depositary receipts representing the shares, for example ADRs or ADSs, may also fall within the scope of Spanish FTT, irrespective of the place of establishment of the issuer of the depositary receipts.
Acquisitions of in-scope shares or depositary receipts resulting from the exercise, conversion, execution or physical settlement of convertible or exchangeable bonds, derivative financial instruments or other financial instruments or agreements may also fall within the scope of Spanish FTT.

Which acquisitions may be subject to Spanish FTT?

Not every acquisition involving an in-scope security automatically gives rise to Spanish FTT. Whether Spanish FTT applies depends on the specific facts and circumstances of the transaction, including the nature of the acquisition and the availability of any applicable exemption. The Spanish FTT is applicable to acquisitions for valuable consideration of in-scope securities where all applicable statutory conditions are met and no exemptions applies. Acquisitions resulting from corporate actions may fall within the scope where they constitute an acquisition for valuable consideration of in-scope securities and no exemption applies. Not every corporate action automatically gives rise to Spanish FTT.

Which instruments or transactions are generally outside the scope?

The Spanish FTT concerns shares as defined in Article 92 of the Spanish Capital Companies Law:

Examples of potentially in-scope securities include:

Shares; and
depositary receipts representing shares, for example ADRs representing in-scope Spanish shares.

Examples of instruments generally not themselves subject to Spanish FTT include:

debt instruments;
units or shares in Collective Investment Vehicles;
units or shares in Exchange-Traded Funds;
derivatives; and
instruments that do not result in an acquisition of in-scope securities.

Please note that derivatives are not themselves subject to Spanish FTT. However, the physical settlement of a derivative in in-scope shares may result in an acquisition subject to Spanish FTT, provided that the applicable statutory conditions are met an no exemptions applies. Similarly, convertible or exchangeable bonds are not themselves subject to Spanish FTT. However, their conversion or exchange may result in a taxable acquisition where in-scope Spanish shares or depositary receipts are transferred for valuable consideration.

Purely cash-settled transactions that do not result in a transfer of in-scope securities remain outside the scope of Spanish FTT.

Which exemptions may apply?

Acquisitions carried out by Eurex Clearing AG in the exercise of its regular clearing functions as a central counterparty are generally exempt from Spanish FTT. The exemption is limited to acquisitions undertaken by ECAG in the exercise of its relevant CCP functions and does not constitute a general exemption for all transactions involving ECAG.

Applicable reporting obligations nevertheless remain in place for exempt acquisitions made by ECAG in its own name and account in its capacity as CCP.

Applicable reporting obligations remain in place for exempt acquisitions made by ECAG in its own name and account in its capacity as CCP. Such acquisitions are generally included on a transaction-by-transaction basis in the reporting for the relevant monthly reporting period in accordance with the reporting process applicable to ECAG. Where the relevant CCP exemption applies, no Spanish FTT payment obligation should arise for ECAG in respect of the exempt acquisition, while the applicable reporting obligation remains in place.

Exempt acquisitions carried out by ECAG in its relevant CCP capacity are generally reported on a transaction-by-transaction basis for the relevant monthly reporting period through the reporting channel applicable to ECAG’s Spanish FTT reporting process.

The reporting of an exempt acquisition must be distinguished from the payment of Spanish FTT. Where the relevant CCP exemption applies, no Spanish FTT payment obligation should arise for ECAG in respect of that acquisition, while the applicable reporting obligation remains in place.

The Spanish FTT does not apply to certain acquisitions where the statutory requirements for an exemption are met. These may include, in particular:

Appropriate functioning of secondary markets:
- CCP and CSD transactions: Acquisitions deriving from purchase, securities lending or other relevant transactions carried out by a central counterparty or a central securities depository in the exercise of their respective clearing or settlement functions.
- Liquidity agreements: Acquisitions carried out by financial intermediaries acting as liquidity providers, subject to the applicable statutory conditions.
- Market-making activities: Acquisitions carried out in the performance of qualifying market-making activities, subject to the applicable statutory requirements.
Other potential exemptions:
- Intragroup transactions:
  - Acquisitions of shares between entities of the same group within the meaning of Article 42 of the Spanish Commercial Code, provided that the applicable exemption requirements are met.
  - Share buy-back programmes: Acquisitions of own shares or shares of a parent company within the context of a qualifying share buy-back programme, where the statutory purpose and other applicable exemption requirements are met. This may include programmes intended to reduce the issuer’s share capital, meet obligations arising from convertible financial instruments or meet obligations arising from employee or director share plans.
- Certain restructuring transactions: Acquisitions qualifying for the applicable special tax regime under Spanish Corporate Income Tax Law 27/2014, including qualifying mergers, divisions, contributions of assets and exchanges of securities, as well as certain qualifying transactions involving Collective Investment Vehicles, compartments or sub-funds.
- Securities financing transactions: Qualifying repurchase transactions, securities lending and borrowing transactions, buy-sell backs, sell-buy backs and margin lending transactions.
- Collateral transactions: Qualifying collateral arrangements involving a transfer of title, provided that the applicable statutory exemption requirements are met.

The availability of an exemption depends on the facts and circumstances of the relevant transaction. The above list is provided for general information and should not be understood as an exhaustive or binding assessment.

What are the responsibilities of Clearing Members?

Each Clearing Member remains responsible for assessing the Spanish FTT treatment of its own activities and transactions. This includes determining whether an acquisition is within the scope of Spanish FTT, whether an exemption applies and whether any reporting, notification or payment obligation arises.

The relevant assessment should take into account the Clearing Member’s role in the transaction chain, the nature of the securities and transaction, the capacity in which the Clearing Member acts and any applicable statutory exemptions.

The Spanish FTT treatment applicable to ECAG in its capacity as CCP does not determine the tax treatment or obligations of a Clearing Member or any of its clients.

Legal basis and further information

The relevant legal framework and official guidance include, in particular:

Further information regarding the Spanish Financial Transaction Tax can be obtained from the applicable Spanish tax legislation, guidance issued by the competent Spanish authorities and other publicly available sources.

For the identification of potentially in-scope issuers and relevant regulatory information, Clearing Members should refer to the information published by the Spanish Tax Agency and seek independent legal or tax advice where appropriate.

Disclaimer

Eurex Clearing AG, hereinafter referred to as "ECAG", explicitly states that it does not provide legal and/or tax advice in relation to the Spanish Financial Transaction Tax. Each Clearing Member is solely responsible for assessing the Spanish FTT treatment of its own activities and transactions and for complying with any resulting legal obligations, including applicable reporting, notification and payment obligations.

This assessment must take into account the Clearing Member’s respective role in the transaction chain and any applicable exemptions.

ECAG assumes no liability for the completeness, accuracy or timeliness of the information provided.
For binding information, please consult a qualified legal or tax advisor. Nothing contained in this publication should be used as a substitute for the advice of competent legal or tax counsel. No written or oral communication provided by ECAG in this context constitutes legal or tax advice. In case of questions, uncertainties or comments, Clearing Members should consult their internal tax department and/or an appropriately qualified legal or tax advisor.

_{¹ The Ministry of Taxes will publish before 31 December of each year the list of Spanish companies with a capitalization value exceeding 1 billion EUR on 1 December of the current year.
The inclusion of a company in that list does not by itself determine whether a specific acquisition is taxable, as the relevant transaction and any applicable exemption must also be considered.}

Frequently asked questions

General information

French financial transaction tax (French FTT)

Spanish Financial Transaction Tax (Spanish FTT)

U.S. Taxation

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Frequently asked questions

General information

What is Eurex Clearing’s ownership structure?

What is Eurex Clearing's governance structure?

Does Eurex Clearing inter-operate with other clearing houses?

Does Eurex Clearing have access to Central Bank funding if needed to maintain intraday liquidity?

Is there a liquidity facility in place to deal with a settlement failure? If yes, what is the arrangement?

What is Eurex Clearing’s legal status, what licenses does it hold and what are the details of the regulatory oversight?

Does Eurex Clearing provide any reporting to regulators?

By which external auditor is Eurex Clearing audited?

How often are Clearing Conditions of Eurex Clearing AG updated and how is the process therefore?

How does Eurex Clearing ensure client confidentiality? Do employees and any other contingent staff sign a data confidentiality agreement with regards to operation of client account and information?

What asset classes does Eurex Clearing clear, in what markets does it operate and what services does it offer?

What are different types of Clearing memberships?

What is required to become a Clearing Member of Eurex Clearing, specifically which application forms are needed?

Is there a Clearing membership fee?

How much does it cost to technically connect to the Eurex Clearing system environment (CCP)?

Which firms are admitted as Clearing Members at Eurex Clearing?

Which cash and settlement accounts does a Clearing Member need and do they have to be in the Clearing Members own name?

Which risk management model does Eurex Clearing use to calculate margin requirements?

What types of margin collateral does Eurex Clearing accept?

How can a Clearing Member manage its collateral?

Does Eurex Clearing offer to segregate client’s collateral and how is it managed?

Does Eurex Clearing maintain position limits? How are these monitored and enforced?

Does Eurex Clearing have a formal crisis management process?

What structure does the crisis management team have and what are its responsibilities?

Does Eurex Clearing’s program cover all risks and scenarios that may cause disruption to its business? If so, what has Eurex Clearing done to mitigate the risks that could disrupt the supply chain that supports its services to its clients?

Does Eurex Clearing have a disaster recovery back up site? If yes, does this site have fully functional operations to support Eurex Clearing’s business and how long does it take for this site to be fully operational?

How/at what point are Clearing Members informed if there is a technical emergency case?

What are Eurex Clearing’s responsibilities in an outage scenario?

French financial transaction tax (French FTT)

Spanish Financial Transaction Tax (Spanish FTT)

U.S. Taxation

What are the consequences for the derivatives markets out of the introduction of Section 871(m) IRC?

Which products may potentially be affected by Section 871(m) IRC?

Which products listed on Eurex Deutschland and cleared through Eurex Clearing AG may potentially be in scope of Section 871(m) IRC?

Who are the responsible parties within Section 871(m) IRC transactions?

What are the prerequisites for the clearing of Section 871(m) IRC transactions?

Who has to provide information on Section 871(m) IRC transactions?

How does Section 871(m) IRC information need to be provided to Eurex Clearing AG?

When does information need to be provided to Eurex Clearing AG?

Where can further information on contractual obligations towards Eurex Clearing AG be found?

Finalization of U.S. tax reporting out of sec.871(m) IRC derivatives transactions during a reporting period/tax year

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