1/4% Tax on all stock trades pushed in NY Times today

Quote from TraDaToR:


One thing will be interesting though, if banks will get exemptions and if so, if they will be able to do it high frequency. Because about 95 % of HFT in Europe in Market making. Left leaning newspapers are already aware and infuriated that it's possible banks will have exemptions like in the UK...
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I was speaking to a trader in a prop firm in london who manually makes markets in government bonds futures. Puts in bid/offers and moves them up and down, trying to earn the spread. He said as long as his firm gets a market maker exemption from FTT he might actually do well after FTT especially if the bid/ask spread widens up and algos are stopped from playing.
I replied i wasn't so sure as maybe if volumes dry up i reckon hes going to be hit hard too, but who knows what the effect will be, maybe he will make more money as a market maker.
 
Quote from slumdog:

I was speaking to a trader in a prop firm in london who manually makes markets in government bonds futures. Puts in bid/offers and moves them up and down, trying to earn the spread. He said as long as his firm gets a market maker exemption from FTT he might actually do well after FTT especially if the bid/ask spread widens up and algos are stopped from playing.
I replied i wasn't so sure as maybe if volumes dry up i reckon hes going to be hit hard too, but who knows what the effect will be, maybe he will make more money as a market maker.
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this market market maker knows his business. he doesn't do business with hfters or algos who are on the same or higher skill level than he is. widening of the spread will work net to his advantage as he become the dominant provider of liquidity.
 
Europe Tightens Fiscal Ties - WSJ.com
http://online.wsj.com/article/SB10001424052970204740904577192253105056954.html

The fiscal compact was signed, without the UK and Czechs. It gives Germans the comfort of more accountants, lawyers and an EU court, to monitor, control and penalize wayward euro zone members like Greece. Yawn, what's so different from the EU treaty already in place that Greece and even the French and Germans exceeded deficit limits on? Will the German's now agree to fund the bazookas? They just deferred that again until March.

There is no mention of FTT in the signed compact, so FTT or stamp duty EU or euro zone wide needs another launch vehicle and it's ride on the fiscal compact was lost. There is no good path or vehicle to passage anytime soon. That's why Sarkozy is jumping ahead for France only. Plus, the UK didn't sign the compact anyway.
 
ONLY THREE out of 27 member states in the European Union strongly favour a transaction tax on financial transactions, according to research by KPMG.

http://www.accountancyage.com/aa/news/2142700/kpmg-eu-governments-wary-transaction-tax

[...]According to KPMG - which has analysed EC governments' public comments on the proposed transaction tax and had informal discussions with the governments, only France, Germany and Spain strongly favour a transaction tax.

Seven other governments, including Austria, Italy and Hungary, support the tax subject to conditions, such as it being introduced across the EU or worldwide.

Three governments - Bulgaria, the Czech Republic and Sweden - clearly oppose the transaction tax, KPMG said.

The UK, Cyprus, Denmark, Ireland, Latvia, Luxembourg, Malta and Netherlands governments - are "less positive" about the transaction tax, KPMG said.[...]
 
The UK, Cyprus, Denmark, Ireland, Latvia, Luxembourg, Malta and Netherlands governments - are "less positive" about the transaction tax, KPMG said.
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I wish the UK Conservative party would stop with 'in principle we have no objection to FTT' line. They know FTT is anti free markets and they should have the balls to say so. I guess being in opposition for 12 years has had this effect.

And Thatcher should have abolished share stamp duty in the 80's when she was pushing for wider public share ownership and the people were lapping it up too.
 
It's official. I read this morning in french press that "the non-speculative activity of market making" by banks will be exempted in french new stamp tax. Zdreg owned us in fact on this subject, despite his overabusive compulsive use of the "P" word. I would have never ever thought any government would buy that bullshit in the current situation. Banks are getting rewarded. They were losing market shares to little HFT market making firms and they will be the only speculators able to make money in french markets.

PS: On a lighter note, I don't know if it's true but they are talking about taxing CDS SHORT-SELLERS( Yep that's right, the combination of 2 evil activies must be even more evil, right? ...)

:D
 
From the KPMG press release, the KPMG assessment of all 27 states:

Supporting
France, Germany and Spain

Supporting subject to conditions such as global or EU introduction, and are overall more positive
Austria, Belgium, Finland, Hungary, Italy, Lithuania and Romania

Neutral, divided or have not yet expressed an opinion
Estonia, Greece, Poland, Portugal, Slovakia and Slovenia

Supporting if certain conditions are satisfied, such as global or EU introduction, but are overall less positive
Cyprus, Denmark, Ireland, Latvia, Luxembourg, Malta the Netherlands and the UK

Against
Bulgaria, the Czech Republic and Sweden

http://www.kpmg.com/UK/en/IssuesAnd...s-of-government-support-in-Member-States.aspx
 
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