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

[tomdavis]

Quote from justrading:

According to this, in 2011 there were 40 countries. http://en.wikipedia.org/wiki/Financial_transaction_tax

Not all 40 are listed though.

Many countries have some form of FTT or stamp duty, but the tax is usually limited to equity shares traded on local exchanges. Many transactions (currencies, options, futures, etc.) are excluded. Also, market makers (banks and investment firms) are usually exempted. In most countries with an FTT, only a small percentage of financial transactions are subject to the tax.

Learn more at: http://financialtransactiontaxes.com/

 

[muller]

This is funny/strange/awkward... ?

So according to http://ibkb.interactivebrokers.com/node/1963 the ft tax is only for stocks listed on a French regulated market or companies headquartered in France.
Let's see how does that play out for those stocks.

According to german news last year (sorry, no source or link) the Germans planned a ft tax that would be subject to traders and institutions trading physically from within the EU.
That way they wanted to prevent the flight of capital like it happened in Sweden in the 80s.

 

[rally64]

Jack Bogle this morning on CNBC was pushing for a transaction tax.

He says back in the old days the markets performed better without all the trading volume we have today.
I'm sure he would love to go back when the brokerages were all heavily regulated and competition was stifled. Lets go back to full service brokers ripping everybody off and we all pay huge commissions and huge spreads.
Of course today's market has its problems for sure but slapping a tax on every trade will solve what exactly?

 

[vicirek]

Many on Wall Street miss the old good days because they underperform in unregulated and highly competitive markets.

 

[buzzie77]

Quote from vicirek:

Many on Wall Street miss the old good days because they underperform in unregulated and highly competitive markets.

Very true, the good old days are long gone, were living in a systematic world, it will never be the old days again.

 

[TraDaToR]

http://in.reuters.com/article/2012/08/08/korea-economy-tax-idINB9E8GB01P20120808

 

[zdreg]

for a measly 88m they are willing to screw up their markets.
perhaps by 2016 they will change their minds.

08/07/2012

SEOUL | Wed Aug 8, 2012 11:30am IST

Aug 8 (Reuters) - South Korea will start taxing popular stock price index options and futures transactions from 2016 as part of changes to tax rules following an annual review, the finance ministry said on Wednesday.

The government will levy a 0.001 percent tax on the value of Kospi 200 futures contracts and a 0.01 percent tax on the premiums for Kospi 200 option contracts starting Jan. 1, 2016, the Ministry of Strategy and Finance said in a statement.

The ministry said the new taxes on the two heavily traded derivatives would raise about 100 billion won ($88.6 million) in tax revenue per year.

 

[justrading]

I am always curious about the detail of how this sort of tax will be levied, unfortunately reports are typically lacking.

If it is 0.001% levied on end buyer and end seller, excluding all parties in between, it will not be the death knell of trading. If they don't exempt market makers then expect spreads to widen. If they tax every step as an individual transaction then kiss trading goodbye.

It would be nice if the people who write these reports understood enough to ask the pertinent questions.

 

[zdreg]

Quote from justrading:

I am always curious about the detail of how this sort of tax will be levied, unfortunately reports are typically lacking.

If it is 0.001% levied on end buyer and end seller, excluding all parties in between, it will not be the death knell of trading. If they don't exempt market makers then expect spreads to widen. If they tax every step as an individual transaction then kiss trading goodbye.

It would be nice if the people who write these reports understood enough to ask the pertinent questions.

"If it is 0.001% levied on end buyer and end seller,"
you are as fuzzy as the people who write these reports.
this is not a game of reverse musical chairs.
what does end mean?

after 10000+ posts we still have mathematically clueless posters.
no one has recommended .001% ftt which is equal to .00001 of the transaction.

 

[justrading]

Quote from zdreg:

"If it is 0.001% levied on end buyer and end seller,"
you are as fuzzy as the people who write these reports.
this is not a game of reverse musical chairs.
what does end mean?

English not your native language? End means final part of something.

In this instance if I buy a futures contract, I am the end buyer. Someone somewhere is selling me that contract and behind him there is nobody else - he is the end seller. Brokers, FCMs, exchanges and anyone else in between are intermediaries to that transaction. I could be a retail trader, fund manager, whatever it makes no difference as the transaction ends with me.