The abrogation of the “Impôt sur les opérations de bourse” did not foster the French stock market

•From 1893 to 2007, a securities transaction tax was levied in France.•With globalization, the implicit tax rate regularly decreased.•Contrary to expectations, the abrogation of the tax did not boost the French market.•The design of securities transaction tax is crucial.

Between 1893 and 2007, a securities transaction tax (“Impôts sur les opérations de bourse”) was levied on the French market. In this paper, I assess the impact of the tax abrogation. Using a difference-in-difference approach, I find no impact on market liquidity and volatility.