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

A really interesting artcile for those who speak french:
http://www.lesechos.fr/entreprises-...onsequences-pour-la-place-de-paris-286627.php

French brokers were worried that France would choose the nationality of the brokerage as the criteria to be taxed. It would have triggered mass relocation of brokers. Since the criteria is the "nationality" of the instrument, they can continue their activity especially on untaxed instruments abroad( Think Newedge...).

HFTs are already planning their headquarters move and lawyers are busy. They are also inventing new instruments like CFDs to replicate french stocks exposure.

The costs for France to put a stamp duty like system to collect the tax are expected to be tremendous.

Please kill the french market.
 
There is one angle of all this the public will instantly understand, either by explination or if it comes to it real life experience, here is a quote from a guy named Tyler who I believe is a rate trader in London:


The stupid! It hurts!

How many times do people have to say it. Adding an FTT will massively raise interest rates. Not by the 10bp of the simple FTT, but for every intermediate transaction the hedging bank has to do to cover that risk. For a 10 year bond, loan or interest rate swap that could be as much as 4%.

That will push ALL lending costs higher. It will dramatically affect pensions.
More...
 
Quote from Explorer:

Finnish PM says no to eurozone FTT - again.

(in French)
http://www.latribune.fr/actualites/...la-finlande-ne-veut-pas-de-la-taxe-tobin.html
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More crazy politics. First Finland signs the "letter of nine," then they turn around and insist on all 27 countries for the FTT.

It's still good news, though. Of the EZ countries, Malta says that they'll only support the FTT if it's global, the Netherlands will probably come out against the FTT after two negative reports from government agencies, and now Finland's President says no unless it's the entire EU (which isn't going to happen and he knows it). In addition to strengthening EZ-17 opposition, Finland's defiance would also make a solid block of Northern European countries (Finland, Netherlands, Sweden and Denmark) against the FTT. That leaves Germany and France even more isolated.
 
Quote from tomdavis:

More crazy politics. First Finland signs the "letter of nine," then they turn around and insist on all 27 countries for the FTT.
More...

I think some countries which signed this letter of nine, have no intention of 'going it alone', but just want a quick decision about if an EU/27-wide FTT is possible or not, as the letter only speaks of 'European level'. That's probably why countries like Finland and Italy signed this letter. It's interesting that 9 countries is also the minimum requirement for starting an ‘enhanced cooperation', but i think it's not more than that. At least 4 of those 9 countries want a FTT only if it's minimal EU-wide.


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
More...
 
Quote from Rantany:

I think some countries which signed this letter of nine, have no intention of 'going it alone', but just want a quick decision about if an EU/27-wide FTT is possible or not, as the letter only speaks of 'European level'. That's probably why countries like Finland and Italy signed this letter. It's interesting that 9 countries are also the minimum requirement for starting an ‘enhanced cooperation', but i think it's no more than that. At least 4 of those 9 countries want a FTT only if it's minimal EU-wide.
More...

I thought the letter from the 9 countries were the ones that were willing to use "enhanced cooperation" to introduce the FTT. Perhaps I was reading too much into it. Anyway, I'm happy that Finland is against the FTT. I hope the Netherlands officially comes out against it, too.
 
I am concerned with London's position since the last study showed that most of what London firms trade are euro denominated.

LME, NYSE-LIFFE... must study the opportunity to create GBP denominated alternatives for every european benchmark or some kind of simple swaps that would just replicate the european product( London Bubl vs German Bobl or whatever...LOL ). Like the professor said in its article, "Who would you bet on? Tax officers or financial engineers?".

We must make their life a living hell and support the UK with our trading. If you can, trade a little Euribor once in a while and boycott anything that comes out of France or Germany.
 
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