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

Comments from Duncan Niederauer (head of nyx) regarding ftt:

http://www.marketwatch.com/story/ny...failed-merger-effort-2012-02-10?siteid=yhoof2

While Niederauer said that France is likely to embrace some manner of “stamp duty” charge linked to financial transactions, in its final form this is not likely to have a big impact on NYSE Euronext’s Paris-based exchange. Italy, Spain, Portugal and Belgium are also looking at various forms of financial transaction taxes, but a euro zone-wide levy is “increasingly unlikely,” Niederauer said.

Also this:


http://finance.yahoo.com/news/NYSE-sees-financial-theflyonthewall-2222481995.html?x=0

NYSE sees financial transaction tax as first envisioned 'increasingly unlikely'.

Places low probability on FTT in Europe that would severly impact business...
 
Quote from Explorer:

If they don't do better than that, someone in London or Zurich or anywhere else will do better than that, and take that business from them.
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And it would be better... As France would have a lot more problems to litigate them based on their "intellectual property" of the instruments( I would be interested in hearing a real legal advice on this crap ).
 
Quote from bjw:

full story

http://www.bloomberg.com/news/2012-...-wipe-10-from-stocks-valuation-hsbc-says.html
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Interesting point here (from the above story):

The proposed tax would amount to about 1 percent of a typical transaction, as every purchase involves about 10 steps and each would be subject to the tariff, Down said in a telephone interview. It would therefore increase the cost of equity, or the amount a company theoretically pays investors in its shares, to about 9.5 percent from 8.5 percent and erode the value of stocks, the analysts estimated.
 
The proposed tax would amount to about 1 percent of a typical transaction, as every purchase involves about 10 steps and each would be subject to the tariff, Down said in a telephone interview.
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It is a lot, the issue was bought up with a big time campaigner who I believe is working with the EU in some manner, although there was mention of short term trading being subject to a lower tax I get the disturbing feeling he does not know the difference between a person making a market and high frequency trading.

Why are you trying to force the tax upon every one without choice, and as for banks/market makers, I have recently read that high frequency traders could potentially pay up up 50% per year due to there high turn over rate, market makers without being given exemptions, as well as subjecting every stage of a trade to the tax will be liable for something very similar.

The costs of this will be transfered to the end users
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In terms of your later points, the 50% rate you mention is a guess-timate based on people trading shares over and over again
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Such as market makers and dealers, because its there job to provide a market and trade over and over again.
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This high frequency trading is something many people think is socially and economically useless or indeed bad, so taxing it heavily would not be a bad idea.
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Yet market making and dealing is neither economically useless or bad
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Den, even in the financial markets there are people who say high frequency trading is a bad idea, eg Lord Adair Turner who first described it as “socially useless”

To reach the 50% tax rate you cite, people would be trading each share 10,000 times a year, or once every 12 minutes of the working day. And yet still they would make a profit!
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Market making is not investing, it is facilitating trade and as far as I am aware under the EU proposals there are no exemptions for such entitys, trading a share 10,000 times a year to hit 50%???

LLOY.LS traded 160642563 yesterday alone.....
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http://touchstoneblog.org.uk /2012/02/cameron-plans-to-let-europe-take-21bn-a-year-from-the-city-and-we-get-nothing/comment-page-1/#comment-64506
 
Well Obama's fiscal 2013 budget is out and thank goodness I didn't see any mention of the ftt. Lot's of other tax hikes in there (capital gains, dividends, and carried interest). I guess the spend and tax ways will continue:(

The good news is this budget is DOA in the Senate.

-Guru
 
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