New York, NY, February 3, 2021 – Today, SIFMA and 31 other organizations representing more than 544,000 workers in the financial services industry in New York State and throughout the U.S., and other business groups in the state, sent a letter opposing the STT to New York State Governor Andrew Cuomo, President Pro Tempore and Majority Leader Andrea Stewart-Cousins and Speaker of the Assembly Carl Heastie

SIFMA issued the following statement from SIFMA president and CEO Kenneth E. Bentsen, Jr. on the New York stock transfer tax (STT).

“SIFMA strongly opposes the imposition of a stock transfer tax (STT) due to the cost to retirement savers, investors, businesses and the economy.  The STT is nothing more than a sales tax on investors and it runs counter to many longstanding policies promoting savings and economic growth.  This type of tax has, in actual practice, resulted in a migration of trading volume to other jurisdictions which have not imposed a STT, which is a predictable result in today’s predominantly electronic and globally connected markets.

“Because no other state in the country imposes a STT, it would be a logical consequence for New York firms to execute and process at least a portion of their trades elsewhere to find the lowest costs for their clients.  Accelerating the trend of securities industry jobs moving to other states would cause further devastation to the New York economy, which is already suffering from the impact of the Covid-19 pandemic.  That, combined with the negative impact on New York’s savers, make the STT a terrible policy move for the state.”

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.