This assumes that banks and other big professionals are not exempted. The banks would love this to pass with them getting an exemption. All other market makers would be put out of business which would allow them to control the market and spread. It would widen a bit but not by too much, allowing them to make more money while keeping everyone else out.
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1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
This assumes that banks and other big professionals are not exempted. The banks would love this to pass with them getting an exemption. All other market makers would be put out of business which would allow them to control the market and spread. It would widen a bit but not by too much, allowing them to make more money while keeping everyone else out.
above is another idiotic ....
zdreg - that is nice but unnecessary.
Of course trading bonds involve trading lots in hundred thousand dollars and is largely institutional now.
However, that what this taxing scheme wants to achieve - take money away from the economy and channel it into government deficits.
If there is no trade tax for bonds somebody will come up with product suitable for retail. I think that you can do some bond buying retail from the government directly now and then sell them on Ebay.
There are also bond ETFs so just rename them FTTEETFs (ftt exempt etf) and we are back in business. Happy trading!
zdreg - that is nice but unnecessary.
Of course trading bonds involve trading lots in hundred thousand dollars and is largely institutional now.
However, that what this taxing scheme wants to achieve - take money away from the economy and channel it into government deficits.
If there is no trade tax for bonds somebody will come up with product suitable for retail. I think that you can do some bond buying retail from the government directly now and then sell them on Ebay.
There are also bond ETFs so just rename them FTTEETFs (ftt exempt etf) and we are back in business. Happy trading!
traderchi128
Guest
Quote from ExchangeBonds:
This assumes that banks and other big professionals are not exempted. The banks would love this to pass with them getting an exemption. All other market makers would be put out of business which would allow them to control the market and spread. It would widen a bit but not by too much, allowing them to make more money while keeping everyone else out.
There is no way in hell that this tax would ever be passed with exemptions to big banks. They are the exact people that the people who are pushing this tax are pissed at.
What are they going to do.....exempt banks, trading firms (essentially mkt makers at times),etc and then only tax retail type accounts?
The people whining for this tax all have investments in retail type accounts.
Quote from traderchi128:
There is no way in hell that this tax would ever be passed with exemptions to big banks. They are the exact people that the people who are pushing this tax are pissed at.
What are they going to do.....exempt banks, trading firms (essentially mkt makers at times),etc and then only tax retail type accounts?
The people whining for this tax all have investments in retail type accounts.
That's exactly what was passed in France, and what do you think the U.K. Stamp fees are? None of the big firms pay that tax.
Quote from traderchi128:
What are they going to do.....exempt banks, trading firms (essentially mkt makers at times),etc and then only tax retail type accounts?
They will exempt the banks, and maybe also pension funds.
This tax will not raise much money with all these exemptions.
They want it because they think it is a weapon they can use against hedge funds and speculators. Like banning short selling. A country 'comes under attack' from the market.. they probably they think can bump up the FTT to 5% (or some other punitive rate) for a period to keep out the evil speculators.
It is being sold as a tax on banks to gain the public support needed for its introduction.
The target is really the big hedge funds.
Retail traders are 'Collateral damage'.
Quote from Rantany:
Seems Italy doesn't resist an EC-FTT anymore..
http://www.google.com/hostednews/af...docId=CNG.b0fb7dc6828ca52a1572617287430601.11
[...]Italyâs representative said it would be âvery important to look at other circumstancesâ, in what could be a hint that Germany could do more to help bring down borrowing costs for Italy and Spain.
Italy signed the initial letter requesting legislative proposals be drawn up by the Commission, but on Friday linked âcredible measuresâ to combat the debt crisis to giving its agreement for enhanced cooperation.[...]
http://www.independent.com.mt/news.asp?newsitemid=146448
traderchi128
Guest
Quote from ExchangeBonds:
That's exactly what was passed in France, and what do you think the U.K. Stamp fees are? None of the big firms pay that tax.
Having something pass in France is a lot different than having something pass here. The whole gov't in France is behind that tax. Here 0% of republicans want it, and a majority of the dems don't want it.
Never going to happen in The U.S.
Quote from ExchangeBonds:
That's exactly what was passed in France, and what do you think the U.K. Stamp fees are? None of the big firms pay that tax.
Yes... It's amazing that France, after loudly declaring that the FTT is a tax on banks, passed an FTT that banks don't pay. What a tragic joke on the French people.
Does anyone know if the French media ever reported that the supposed tax on banks excludes most banks?
traderchi128
Guest
Quote from southall:
They will exempt the banks, and maybe also pension funds.
This tax will not raise much money with all these exemptions.
They want it because they think it is a weapon they can use against hedge funds and speculators. Like banning short selling. A country 'comes under attack' from the market.. they probably they think can bump up the FTT to 5% (or some other punitive rate) for a period to keep out the evil speculators.
It is being sold as a tax on banks to gain the public support needed for its introduction.
The target is really the big hedge funds.
Retail traders are 'Collateral damage'.
You mean the evil speculators who drove Crude below 80 and driving RBOB prices into the ground ?
It's funny how Obama/Dems were all over the news when Crude was 108....but now you don't hear a peep out of em.
Listen....I appreciate this thread and the guy behind it......I am on his side. But....this tax will NEVER happen over here. Hell....they can't get it going over in Europe. They tried this assinine tax in the past in other countries and the results were devastating both in terms of lack of taxes collected and having the markets plummet.
All the people who want this tax like the nurses...should stick to what they know...being a nurse....and the occupy Wall street people should stick to what they know...not working....leaching of others and blaming others for their inability to get a job.
I'm not saying it has a good chance of being passed. What I'm saying is that if it gained traction over here, don't believe for one second the big banks are on our side. They won't fight for it to not happen but to fight for an exemption.