1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Keep your opinions on the situation coming, Guru, they have been informative and accurate.
Which countries?
It sounds like Todd Harrison over at Minyanville expects the Ftt to make it's way over here:
http://www.minyanville.com/business...tock-market-stocks-economy/8/16/2011/id/36380
This news "should" ultimately reduce volatility in large-cap names while generating revenue for cash-strapped countries -- and like it or not, it will likely cross the Atlantic for stateside implementation as The War on Capitalism continues.
"For if weâre not careful with how we wean the market off the 70% plus of daily market volume, which is where some estimate high frequency trading is responsible for, zombie banks may be the least of our worries. We could recede into a zombie market, where merchandise trades by appointment."
I do not agree with Todd on this one. I find it highly unlikely the ftt will ever see the light of day in the EU let alone ever cross the Atlantic. Thats my story and I'm sticking to it
-Guru
http://www.minyanville.com/business...tock-market-stocks-economy/8/16/2011/id/36380
This news "should" ultimately reduce volatility in large-cap names while generating revenue for cash-strapped countries -- and like it or not, it will likely cross the Atlantic for stateside implementation as The War on Capitalism continues.
"For if weâre not careful with how we wean the market off the 70% plus of daily market volume, which is where some estimate high frequency trading is responsible for, zombie banks may be the least of our worries. We could recede into a zombie market, where merchandise trades by appointment."
I do not agree with Todd on this one. I find it highly unlikely the ftt will ever see the light of day in the EU let alone ever cross the Atlantic. Thats my story and I'm sticking to it
-Guru
More of the same. This time from WSJ:
http://online.wsj.com/article/BT-CO-20110816-715037.html
A renewed push to introduce a transaction tax on financial trades triggered a slide in exchange stocks Tuesday after German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged to launch a new proposal in September...
Deutsche Boerse and NYSE Euronext, aiming to finalize a merger by the end of 2011, were seen among the hardest hit by an E.U. transaction tax, according to analysts...
Equity Research Desk analysts told clients in a note Tuesday that London Stock Exchange Group plc (LSE.LN) would be "significantly" impacted, with the potential for some traders to shift investing toward American Depository Receipts listed on U.S. markets to avoid paying the tax.
ICE could lose out as traders abandon its U.K. crude oil derivatives markets for similar contracts traded on the New York Mercantile Exchange, run by CME Group Inc. (CME), the firm told clients.
"There's always a chance, but for them to implement a pan-European tax, it would have to be approved by the individual countries," said BMO's Miller, noting U.K. opposition to the idea as recently as June.
"Unless France and Germany are willing to go ahead on their own, I wouldn't expect this to get approval," she said.
http://online.wsj.com/article/BT-CO-20110816-715037.html
A renewed push to introduce a transaction tax on financial trades triggered a slide in exchange stocks Tuesday after German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged to launch a new proposal in September...
Deutsche Boerse and NYSE Euronext, aiming to finalize a merger by the end of 2011, were seen among the hardest hit by an E.U. transaction tax, according to analysts...
Equity Research Desk analysts told clients in a note Tuesday that London Stock Exchange Group plc (LSE.LN) would be "significantly" impacted, with the potential for some traders to shift investing toward American Depository Receipts listed on U.S. markets to avoid paying the tax.
ICE could lose out as traders abandon its U.K. crude oil derivatives markets for similar contracts traded on the New York Mercantile Exchange, run by CME Group Inc. (CME), the firm told clients.
"There's always a chance, but for them to implement a pan-European tax, it would have to be approved by the individual countries," said BMO's Miller, noting U.K. opposition to the idea as recently as June.
"Unless France and Germany are willing to go ahead on their own, I wouldn't expect this to get approval," she said.
- Transaction Tax idea being discussed vocally in Europe with discussion starting up again in the USA media about the concept.
- High market volatility with general public hate (fed by the media) of high frequency trading.
- Another USA debt commission coming in November with an up or down vote on an entire package of cuts & possible taxes.
Get ready for the next wave...
- High market volatility with general public hate (fed by the media) of high frequency trading.
- Another USA debt commission coming in November with an up or down vote on an entire package of cuts & possible taxes.
Get ready for the next wave...
This is a nice read on why the ftt is a joke of a tax:
EU Solution - A Transaction Tax- What it means to you and why the market tanked:
http://pointsandfigures.com/2011/08...at-it-means-to-you-and-why-the-market-tanked/
EU Solution - A Transaction Tax- What it means to you and why the market tanked:
http://pointsandfigures.com/2011/08...at-it-means-to-you-and-why-the-market-tanked/
Quote from listedguru:
It sounds like Germany and France are going to propose an FTT to the other EU member nations next month:
http://news.xin.msn.com/en/business/article.aspx?cp-documentid=5166860
"The German and French finance ministers will put a joint proposition for a tax on financial transactions on the table of European institutions from next month, September," Sarkozy told reporters.
I would assume this would still require all EU member nations to agree to it (fat chance). To me it doesn't sound like Germany and France would go it alone unless they somehow decided to after this FTT proposal gets flat out rejected by the entire EU...
Time for the UK to come out and say no way
-Guru
Could it be that this new proposal is just an attempt to regain the initiative back from the commission by releasing a Franco-German proposal ahead of the commssion's proposal?
Germany objected to the commission's recent announcement of an FTT proposal because it proposes to fund the European budget from an FTT whereas Germany wants to keep any FTT revenue for national budgets. Germany may have resented the commission trying to steal the (doubtful) rewards.
The odds of either proposal gaining unanimity remain dismal, but maybe this is just about out-manoeuvring the commission.
