Italian Financial Transaction Tax Implications of the Evolving Regulatory Landscape: The Exemption for Market Makers – An Update

This article outlines the interrelations between the exemption for market-making activities under the Short Selling Regulation, as interpreted by the European Securities and Markets Authority (the ESMA), and the Italian financial transaction tax exemption available for market makers. The author considers in this respect the implications deriving from the November 2019 joint communication by CONSOB and the Bank of Italy concerning the ESMA Guidelines, the United Kingdom’s exit from the European Union on 31 January 2020 and the three-month short selling restriction enacted by CONSOB in March 2020.