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

Quote from tomdavis:

It's like the LA Times and the illegal immigration issue. As far as they're concerned, there's only one point of view allowed and all others must be silenced.
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Good point. Yes, I suppose it is.

Having said that, I haven't seen such particularly consistent cant in NYT--and by that, I mean the consistent use of phraseology in "b-matter" (journalism-speak for the boilerplate background info. used in stories).

Furthermore, LATimes' position on immigration, it could be argued, aligns with its circulation objectives. I still don't understand why NYT would want to attack an industry that provides 25% of its community's municipal revenues.
 
Quote from tomdavis:

Algo-driven trading actually started back in the late 1970's (though very crude by today's standards). When I was in grad school (mid/late-1980s) we did some research on its effects on the markets. At the time, Algo volume was very low (% of total) and limited in scope and it wasn't very well known to the public. One of my math professors was a consultant to GS, otherwise I probably wouldn't have heard about it until years later.
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Sure, but he specifically mentions High Frequency Trading. I doubt anyone did second length trades back then as the infrastructure couldn't really support it. If I'm in the wrong here, enlighten me.
 
Quote from d08:

Sure, but he specifically mentions High Frequency Trading. I doubt anyone did second length trades back then as the infrastructure couldn't really support it. If I'm in the wrong here, enlighten me.
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The algo-trading back in the 1980s was HFT relative to everybody else in the market. When everybody else was placing orders via telephone, they were using computers to trade faster, more often and for shorter periods than anyone else at the time. It wasn't HFT by today's standards, but compared to what everyone else was doing back then it was high-frequency trading.
 
Quote from listedguru:

Interesting piece from Australia:

Cost recovery-levy sure walks like a financial transaction tax:

http://www.smh.com.au/business/cost...inancial-transactions-tax-20120103-1pjkd.html

Before Christmas the Australian Securities and Investments Commission sent brokers an invoice for what it is likely to charge them in 2012 for market supervision. The charge depends on the type of services and the size and volume of trades and messages.

Some of the smaller, traditional brokers were told they would pay an estimated $40,000 to $60,000, while some of the bigger broking houses offering high-frequency trading could pay more than $1.5 million.

Given the tough conditions in broker land, this added cost could push some over the edge or send a few more into shadow broking, which is less regulated and where most of the recent blow-ups occurred, including Sonray, Chartwell Enterprises, Lift Capital and Storm Financial.

And while the stockbroking industry and the exchanges, including Chi-X, knew the levy was coming - and argued vigorously against it - many were shocked when ASIC sent them an email before Christmas giving a breakdown of the calculation, including how much they would be pinged for ''order messages'', which is the technical term for standing in the market without necessarily executing a trade. For market makers and high-frequency traders, who rely heavily on messaging, the new tax will make their business model a lot more expensive. It will push at least one broker into the red.
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This new measure, secondary to their new minerals resources tax and carbon dioxide tax to be introduced mid-2012 (the internationally uncompetitive carbon tax described by Obama as "bold"), further lessens any possibility Australia would comply with FTT proponents at G-20 level.
 
Quote from bjw:

i agree. it's exactly the tone of voice that must annoy a lots of smaller countries. either way, looks like a final showdown is coming in the next 1-3 months. i wouldn't be surprised at all if in the end what we'll get is appr. 10 countries going at it alone;
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Their language is reminiscent of a past era. It's not going unnoticed by both small and increasingly powerful Asian countries. For example Bloomberg today reports that India and China are refusing to adhere to European ETS demands, unhappy that Europe is operating unilaterally. (Again). If arrogant European dictators think they can walk over China and India --- they are truly living in cloud cuckoo land.
 
France to push ahead with ‘Tobin tax’ proposal - FT.com
http://www.ft.com/intl/cms/s/0/750c8722-36f2-11e1-96bf-00144feabdc0.html

Sarkozy is accelerating FTT in France - by the end of this February - to help him win his May re-election against the leading Socialists. A center-right politician in Europe - like Sarkozy and Merkel - needs to show off their anti-banking Wall-Street-cred to win, and FTT is their ticket.

FTT is one of Sarkozy's three New Years Eve resolution top priorities, along with the jobless and cutting unemployment costs. The later two are hopeless, so he needs FTT to paper over the bad economic news, scapegoating and taking it out of bankers and traders hides. Bankers are the new aristocrats to round up in the socialist revolution sweeping failing-euroland. Redistribution desperation 101.

Merkel will use the same play book in Germany, and she gets to see how Sarkozy handles FTT politics first. Let's hope Sarkozy wins and then gives up this economy-destroying FTT proposal. But even then, that won't help much because FTT is part of EU-fiscal-union politics too and that will only play out over a few years. Maybe, a Merkozy joint win can lead to peace with the UK and burying of the FTT hatchet.

It seems like FTT will happen in euro-land center, and hopefully it will melt fast, rather than gather as a snowball. Let's hope traders and the markets can punish the politicians for their over reach in a fast and furious manner. I'm betting on the power of free markets.
 
Quote from tortoise:

I still don't understand why NYT would want to attack an industry that provides 25% of its community's municipal revenues.
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A friend of mine who works in the financial sector and lives in Manhattan has been contacting New York City Council Members. Every one of them that he's been able to contact so far, and that includes 6 of the 10 representatives from Manhattan, say they're in favor of the FTT. When he tries to explain to them how devastating the tax will be to Manhattan's economy, they all give the same response along these lines:"The tax is so small that the big banks and hedge funds won't even notice it. A few small firms might leave, but not enough to make any difference." In other words, they don't believe the FTT will harm NY's economy.

If they believe it won't damage NY's economy, why shouldn't the NYT support it, too?
 
Quote from tomdavis:

A friend of mine who works in the financial sector and lives in Manhattan has been contacting New York City Council Members. Every one of them that he's been able to contact so far, and that includes 6 of the 10 representatives from Manhattan, say they're in favor of the FTT. When he tries to explain to them how devastating the tax will be to Manhattan's economy, they all give the same response along these lines:"The tax is so small that the big banks and hedge funds won't even notice it. A few small firms might leave, but not enough to make any difference." In other words, they don't believe the FTT will harm NY's economy.

If they believe it won't damage NY's economy, why shouldn't the NYT support it, too?
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Wow. Ok, then.

In the old days, journalists prided themselves on independent-mindedness and other such notions and left faux-populism to the pols. How quaint.
 
Quote from tortoise:

Wow. Ok, then.

In the old days, journalists prided themselves on independent-mindedness and other such notions and left faux-populism to the pols. How quaint.
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Today, journalists pride themselves on being activists.
 
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