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

[PatternRec]

Quote from zdreg:

the politicians will now say that a FTT is for the good of the markets as it will slow down volatile trading.

More likely they will look to ameliorate the volatility spikes presumably caused by high frequency trading.

 

[zdreg]

you are right,. since talk is cheap they will talk about everything.
the bottom line is what they will do,.

 

[The Big D]

Quote from PatternRec:

More likely they will look to ameliorate the volatility spikes presumably caused by high frequency trading.

The problem with this is that many HFTs are fundamentally market makers, not trend followers. And a LACK of market making activity is at the root of price spikes. So reigning them in somehow would just make the electronic exchanges more volatile (or just plain unusable) rather than calming them down.

Many if not most HFT firms were out of the market when everything fell apart. That's part of why it fell apart.

 

[zdreg]

Quote from The Big D:

The problem with this is that many HFTs are fundamentally market makers, not trend followers. And a LACK of market making activity is at the root of price spikes. So reigning them in somehow would just make the electronic exchanges more volatile (or just plain unusable) rather than calming them down.

Many if not most HFT firms were out of the market when everything fell apart. That's part of why it fell apart.

true. HFT get paid for providing liquidity which is a big source of income for them.

 

[cstfx]

Quote from PatternRec:

More likely they will look to ameliorate the volatility spikes presumably caused by high frequency trading.

Yesterday the exchanges and off exchanges did something like 26 billion shares. I have this image of Dean Baker salivating over all the money they could have had from the tax.

 

[zdreg]

Quote from cstfx:

Yesterday the exchanges and off exchanges did something like 26 billion shares. I have this image of Dean Baker salivating over all the money they could have had from the tax.

"the politicians will now say that a FTT is for the good of the markets as it will slow down volatile trading."

thx for clarifying what i left out. to the politicians this is a golden opportunity to raise taxes while claiming to help the small investor.

 

[listedguru]

Quote from zdreg:

"the politicians will now say that a FTT is for the good of the markets as it will slow down volatile trading."

thx for clarifying what i left out. to the politicians this is a golden opportunity to raise taxes while claiming to help the small investor.

If the FTT were in place yesterday would have been a whole lot worse. Volume would have been a lot less and volatility would have been worse.

 

[Moneyball]

Quote from listedguru:

If the FTT were in place yesterday would have been a whole lot worse. Volume would have been a lot less and volatility would have been worse.

Unfortunately, it won't be presented that way- they'll say less "speculative" volume is good, and if the FTT was in place, the massive selling by the speculators wouldn't have happened. You'll only hear one side of the story, which is all the public wants to hear. Not good.

 

[TraDaToR]

English speaking people, would you please "add some comments" on this wikipedia page that doesn't even have one single argument against it:http://en.wikipedia.org/wiki/Financial_transaction_tax

The goal is that when the guy comes back to his page, he would give up arguing...

 

[listedguru]

Mark Cuban calling for transction tax, etc:

"What Business Is Wall Street In?"

http://www.businessinsider.com/what-business-is-wall-street-in-2010-5

"My 2 cents is that it is important for this country to push Wall Street back to the business of creating capital for business. Whether its through a use of taxes on trades, or changing the capital gains tax structure so that there is no capital gains tax on any shares of stock (private or public company) held for 5 years or more, and no tax on dividends paid to shareholders who have held stock in the company for more than 5 years."

-Guru