On June 2, the Financial Conduct Authority (FCA) published issue 52 of Market Watch, its market conduct and transaction reporting newsletter. The newsletter focuses on the practice of dividend arbitrage, the intention of which is to place shares in alternative tax jurisdictions around dividend dates, with the aim of minimizing withholding taxes (WHT), or generating WHT reclaims. This may involve several different trading activities, such as trading and lending securities and trading derivatives, including futures and total return swaps, that are designed to hedge movements in the price of the securities over the dividend dates.
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