Reactions in Borsa Italiana( translator needed ):
http://www.borsaitaliana.it/borsa/n...a-dettaglio.html?newsId=N331482&type=TOP_NEWS
http://www.borsaitaliana.it/borsa/n...a-dettaglio.html?newsId=N331482&type=TOP_NEWS
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
So what exactly would this add to the 70 odd cents per round trip currently in bund, is it of the underlying 100,000 euros? 10 euros!? The whole market will collapse no liquidity can be provided at those rates, end of HFT and locals for starters and most hedge funds. Their calculations of income from this I assume is on current volumes when it will be 10% of current volumes if they're lucky. I can't see the whole world agreeing, the bonds would be just be priced somewhere else on a representative exchange. Dubai, Venezuala, Iran wherever, most likely somewhere where they couldn't care less about offending the West
For years now, they have been talking about a tax, but politicians are imprecise about the terms: as a forex trader, I'm wondering which types of transactions would be aimed at? Will Forex be affected ? And how ? There's no centralized place for currency exchange transactions: if I' m trading forex through a US forex broker for example, while living in France, will the transactions be taxed ? For now , I have no response to that.
EU commission budget proposal faces barrage of criticism
http://www.monstersandcritics.com/n...on-budget-proposal-faces-barrage-of-criticism
http://www.monstersandcritics.com/n...on-budget-proposal-faces-barrage-of-criticism
Plans to introduce the FTT - which according to EU officials should contribute some 37 billion euros by 2020 - covering almost 23 per cent of the EU budget, were also criticized.
"European Central Bank President Jean-Claude Trichet told the European Parliament that introducing such a measure in the EU would drive out investors - a 'dreadful disadvantage' at a time when the bloc needed 'as much activity as possible,' he argued.
Britain, Sweden, the Netherlands and the Czech Republic echoed that criticism, extending it to parallel suggestions to tweak value added tax (VAT)-based national contributions to the EU budget."
Wow can you say DOA
-Guru
This seems to indicate that the European Commission believes that an EU only ftt would raise $180B Euro's annually and it would allocate $45B Euro's to fund the growing EU budget:
http://www.telegraph.co.uk/finance/...ax-on-finance-to-fund-higher-EU-spending.html
"Britain will oppose the increase and a proposal that up to 25pc of an EU-wide tax on financial transactions could be ring-fenced to raise £45bn a year to fund the growing expenditure.
EC officials believe a financial transaction tax could bring in £180bn a year, with the bulk going to national treasuries and using a "skim" for the EU to offset resented annual contributions to Brussels."
Mats Persson, director of think tank Open Europe, said the proposal would pass the burden to consumers via complicated "stealth" taxes rather more accountable national treasury contributions funded by direct, income taxation. "Apart from lacking democratic legitimacy, the cost from such a tax will not primarily hit bankers," he said.
British banks and business fear the City will bear most of the burden of a financial tax and that attempts to introduce it at the EU rather than at a global level will drive financial companies out of Britain, and Europe.
-Guru
http://www.telegraph.co.uk/finance/...ax-on-finance-to-fund-higher-EU-spending.html
"Britain will oppose the increase and a proposal that up to 25pc of an EU-wide tax on financial transactions could be ring-fenced to raise £45bn a year to fund the growing expenditure.
EC officials believe a financial transaction tax could bring in £180bn a year, with the bulk going to national treasuries and using a "skim" for the EU to offset resented annual contributions to Brussels."
Mats Persson, director of think tank Open Europe, said the proposal would pass the burden to consumers via complicated "stealth" taxes rather more accountable national treasury contributions funded by direct, income taxation. "Apart from lacking democratic legitimacy, the cost from such a tax will not primarily hit bankers," he said.
British banks and business fear the City will bear most of the burden of a financial tax and that attempts to introduce it at the EU rather than at a global level will drive financial companies out of Britain, and Europe.
-Guru
Trichet urges EU to drop Tobin tax plan
Jean-Claude Trichet on Thursday urged European Union policymakers to ditch plans for a financial transaction tax, warning that the blocâs financial centres would lose out unless the scheme was adopted globally.
The president of the European Central Bankâs outspoken opposition to a so-called Tobin tax came just one day after the European Commission said it would look to raise up to â¬30bn a year from imposing a levy on all financial transactions.
Mr Trichet stressed that even a small tax could lead to European financial centres losing market share.
âI call for great, great prudence in introducing something which is not done at a global level,â Mr Trichet said. âLetâs be sure we donât do something we might regret one day ⦠If certain transactions are considerably more costly in Europe than in other parts of the world, they will be done overseas.â
Even a global tax might be counter-productive, he argued.
âI understand it appeals to some observers. But if we are not satisfied with the overall functioning of our financial system, is the right thing to do to put sand in the machine?â
Mr Trichet noted that even James Tobin, the US economist who developed the concept of a tax on financial transactions in the 1970s, had subsequently cooled to the idea before his death in 2002.[...]
http://www.ft.com/cms/s/0/00c316b0-a327-11e0-a9a4-00144feabdc0,s01=1.html
Jean-Claude Trichet on Thursday urged European Union policymakers to ditch plans for a financial transaction tax, warning that the blocâs financial centres would lose out unless the scheme was adopted globally.
The president of the European Central Bankâs outspoken opposition to a so-called Tobin tax came just one day after the European Commission said it would look to raise up to â¬30bn a year from imposing a levy on all financial transactions.
Mr Trichet stressed that even a small tax could lead to European financial centres losing market share.
âI call for great, great prudence in introducing something which is not done at a global level,â Mr Trichet said. âLetâs be sure we donât do something we might regret one day ⦠If certain transactions are considerably more costly in Europe than in other parts of the world, they will be done overseas.â
Even a global tax might be counter-productive, he argued.
âI understand it appeals to some observers. But if we are not satisfied with the overall functioning of our financial system, is the right thing to do to put sand in the machine?â
Mr Trichet noted that even James Tobin, the US economist who developed the concept of a tax on financial transactions in the 1970s, had subsequently cooled to the idea before his death in 2002.[...]
http://www.ft.com/cms/s/0/00c316b0-a327-11e0-a9a4-00144feabdc0,s01=1.html