The Dutch Finance Minister, Jan Kees de Jager, has said on several occasions that he won't support a financial transactions tax because it will drive investment capital out of the Netherlands. Until recently, nobody paid much attention to him. Since he's one of the last significant holdouts (with Sweden and the UK), I'm sure Germany and France will put tremendous pressure on him.
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
The European Union plans to introduce a financial transaction tax that will also affect banks in the U.S.
http://www.bloomberg.com/news/2011-...ay-affect-non-eu-banks-handelsblatt-says.html
So, this will reduce foreign investment coming into the US.
http://www.bloomberg.com/news/2011-...ay-affect-non-eu-banks-handelsblatt-says.html
So, this will reduce foreign investment coming into the US.
This is disturbing if true and I hope it's not possible.
It reminds me of the U.S. CFTCâs global overreach on the new forex regulations for retail off-exchange forex trading by Americans. The CFTC blocked Americans from using offshore forex brokers and banks unless those brokers registered with the CFTC or other U.S. appropriate regulatory body and limited leverage to CFTC rules.
Tax authorities are always trying to have global reach to enforce their rules.
The Germans and French can do a lot of damage here. There are two sides to trades and often itâs a trade between Eurozone and outside the Eurozone. Most large banks do business in and out of the Eurozone and imagine if the Eurozone required global application of their taxes for the right of doing business in the Eurozone. Not sure it makes sense, but I am sure they are looking into all this type of trouble-making.
The Germans and French want FTT for everyone, and they are very competitive. They donât want FTT in the Eurozone which could hurt them, so they are trying to force it on the entire world with their application and connectedness of financial transactions. Tax-hike contagion.
Are we heading into Tax Wars?
What is "fun" in the way they want it is one asian trading with an american on Eurex wouldn't be taxed AFAIK.
They want to tax based on residence only, and I haven't seen any reference to a tax at the clearing house. So as soon as the tax is applied, non europeans will have a huge incentive to trade on european exchanges because the traditional european Market makers or prop firms will have to stop their activity or relocate( which take some time to reorganize ). It's the perfect recipe for the EU to "offer" our markets to foreigners...
Other than that, yes EU traders trading through US clearing firms will have to pay the tax so It will hurt US clearing firms which have a lot of european clients. In the end, the small european retail clients will disappear but the professionals and firms will relocate, so it will be bad for IB, TradeStation but not much for big chicago FCMs( talking futures here ).
They want to tax based on residence only, and I haven't seen any reference to a tax at the clearing house. So as soon as the tax is applied, non europeans will have a huge incentive to trade on european exchanges because the traditional european Market makers or prop firms will have to stop their activity or relocate( which take some time to reorganize ). It's the perfect recipe for the EU to "offer" our markets to foreigners...
Other than that, yes EU traders trading through US clearing firms will have to pay the tax so It will hurt US clearing firms which have a lot of european clients. In the end, the small european retail clients will disappear but the professionals and firms will relocate, so it will be bad for IB, TradeStation but not much for big chicago FCMs( talking futures here ).
Britain is to sue the European Central Bank for setting rules that allegedly handicap the City of London and would force one of the worldâs largest clearing houses to decamp operations to the euro area[...]
[...]An ECB policy paper, released in the summer, requires clearing houses to be based in the eurozone if they handle more than 5 per cent of the market in a euro-denominated financial product.
Britain will ask the courts to strike down the rule on the grounds that it restricts the free movement of capital and infringes on the right to establish cross-border businesses across a multicurrency European Union[...]
http://www.ft.com/cms/s/0/146a256e-dee1-11e0-9130-00144feabdc0.html
[...]An ECB policy paper, released in the summer, requires clearing houses to be based in the eurozone if they handle more than 5 per cent of the market in a euro-denominated financial product.
Britain will ask the courts to strike down the rule on the grounds that it restricts the free movement of capital and infringes on the right to establish cross-border businesses across a multicurrency European Union[...]
http://www.ft.com/cms/s/0/146a256e-dee1-11e0-9130-00144feabdc0.html
Very independent people...one summary of the story as it hits
EU Commission document suggests that the EU could impose a tax on trading bonds and equities (Tobin Tax) by 2014 - financial press-
Primary markets for currencies and securities would be excluded from the tax.
The story is from reuters i don't have full text yet
EU Commission document suggests that the EU could impose a tax on trading bonds and equities (Tobin Tax) by 2014 - financial press-
Primary markets for currencies and securities would be excluded from the tax.
The story is from reuters i don't have full text yet
If this is true and actually happens it's very clever.
Non EU banks will have to create infrastructure to do the FTT related accounting on transactions for EU citizens.
So... American banks will have to build up this infrastructure (or turn away business from the EU).
Once that infrastructure is in place at the major banks there is one less barrier to getting an FTT enacted ...in the US or globally.
I really hope they are using the word "plan" liberally in the article.
French too. L"Impot de Bourse" was abolished in January 2008 by ... Sarkozy( He likes to promote things as long as France doesn't pay for it...LOL). It was a tax of 0.3% of face value for stock orders of more than 7600 Euros. It is the reason I and other french people decided to trade the US.