French President Nicolas Sarkozy and German Chancellor Angela Merkel ruled out the idea of issuing eurobonds, instead agreeing to propose a tax on financial transactions. The change likely would cause trading volume to plunge, particularly among high-frequency traders. However, doing so would be difficult. "The challenge in implementing a transaction tax is that transaction taxes have to be proposed and adopted across many jurisdictions in order to avoid imbalances of activity," one trader said.

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