Paul  I found your answer to this post that partially explains why I am getting CM leverage although the tag content differs. Your statement is "the TM doesn't hold tag detail, it only holds a placeholder", which matches my tests both in WorldServer and in Studio. However, I would like to understand how the Different Formatting Penalty works in this context because I haven't managed to make this work either. I was assuming that maybe there is a different mechanism with actual formatting tags like bold, italic etc. But that does not seem the case either. This is a screenshot from a file with words in italic style getting CM or 100% match from TM entries created out of a previously translated file containing the same source text but with the same words in italics instead of bold. Still getting CM or 100%.

Am I not supposed to get a 99% Fuzzy Match if the different formatting penalty is applied? I also tested using the *.doc and xlsx format instead of *.docx in case the penalty is meant for different file formats: same results.

Ok, I have worked some more on this. The Different Formatting Penalty will be applied only if the source segment contains an additional formatting element that was not present in the previous document and in the TM entry created out of it.

I think I have answered my own question now, but feel free to comment.

Caterina Lazzarini sounds like you answered your own question.

Tags in TM are nothing more but placeholders so that regardless of future projects you are more likely to get high fuzzy matches.
The detail of the tags will then be driven by the source content when it comes to generating the target file

You are right when you say:

Caterina Lazzarini said:

The Different Formatting Penalty will be applied only if the source segment contains an additional formatting element that was not present in the previous document and in the TM entry created out of it.

I hope this puts your mind at ease

Lyds