1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
My response also appeared only to be quickly deleted.
Germany Moves to Brake High-Speed Trading - WSJ.com
http://online.wsj.com/article/SB10000872396390444813104578018292059338944.html
Seems like a fairly reasonable approach to reining in HFT. A limit on quote stuffing, and perhaps higher fees for using markets for unexecuted trade orders. I think we need to join forces to rein in HFT, and make sure regulators and politicians don't turn to a more harmful shotgun-FTT for reining in HFT.
It's better for the center-right with exchanges involved to reform HFT, rather than finance-hating leftists.
Article also mentions France's FTT to rein in HFT. Is this an indication that Germany is moving in a different direction? More targeted than FTT. Or, both directions at once?
http://online.wsj.com/article/SB10000872396390444813104578018292059338944.html
Seems like a fairly reasonable approach to reining in HFT. A limit on quote stuffing, and perhaps higher fees for using markets for unexecuted trade orders. I think we need to join forces to rein in HFT, and make sure regulators and politicians don't turn to a more harmful shotgun-FTT for reining in HFT.
It's better for the center-right with exchanges involved to reform HFT, rather than finance-hating leftists.
Article also mentions France's FTT to rein in HFT. Is this an indication that Germany is moving in a different direction? More targeted than FTT. Or, both directions at once?
nation_moderator
Your comment was picked up by our automatic SPAM filter. This was unrelated to your content, the post was probably removed because of the link you included. I've re-posted it.
in reply to tomdavis2020
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My post is back up. Never had a link in it.
On other occasions, several anti-FTT posts can be posted for hours then disappear after checking several times per day or the next day.
Today the posts are rejected in seconds or a minute. Repeat user names are being blacklisted?
A few months ago, a few hours after the first time i posted at The Nation, for the first time in years Disqus prevented me from posting on a few other sites stating that it had received a complaint because of my posting. This went on for about a week. Just a coincidence...i doubt.
Your comment was picked up by our automatic SPAM filter. This was unrelated to your content, the post was probably removed because of the link you included. I've re-posted it.
in reply to tomdavis2020
--------------------
My post is back up. Never had a link in it.
On other occasions, several anti-FTT posts can be posted for hours then disappear after checking several times per day or the next day.
Today the posts are rejected in seconds or a minute. Repeat user names are being blacklisted?
A few months ago, a few hours after the first time i posted at The Nation, for the first time in years Disqus prevented me from posting on a few other sites stating that it had received a complaint because of my posting. This went on for about a week. Just a coincidence...i doubt.
http://www.euractiv.com/euro-finance/france-pushes-ftt-year-news-514989
"According to EurActiv France, French MP Philip Cordery recently lamented that ânot even eight countriesâ were prepared to launch the FTT. Reportedly, France, Germany, Austria, Spain, Greece, Poland, Italy are pushing for the idea, but some of them appear to have different views if the proceedings from such a tax should feed the EU budget. "
"According to EurActiv France, French MP Philip Cordery recently lamented that ânot even eight countriesâ were prepared to launch the FTT. Reportedly, France, Germany, Austria, Spain, Greece, Poland, Italy are pushing for the idea, but some of them appear to have different views if the proceedings from such a tax should feed the EU budget. "
ZH just mentioned it as well.
http://www.zerohedge.com/news/2012-09-26/germany-does-what-sec-hasnt-prepares-ban-hft
Germany Does What The SEC Hasn't - Prepares To Ban HFT
Submitted by Tyler Durden on 09/26/2012 11:30 -0400
Circuit Breakers Commodity Futures Trading Commission Dow Jones Industrial Average France Germany HFT Securities and Exchange Commission Trading Systems
The EU assembly just voted affirmatively to impose a spate of rules to control 'high-frequency-trading that, as the WSJ reports, was advanced by Germany following their concerns that speedy traders have brought instability to markets. It is somehow reassuring that three-years after we first brought HFT to the mainstream's agenda, at least one nation is taking it seriously, doing something about it, instead of being filibustered into the 'liquidity-providing' meme. The rules will initially require registration, collect fees on excessive use of HFT methods, and install circuit breakers with the goals to "limit the risks associated with high-frequency trading" per a senior German FinMin; but the more stringent rules to come will have the greatest impact as they intend to include requirements for orders to rest on the exchange book for at least half-a-second, and potentially order-to-trade ratio caps. Not surprisingly, the HFTs believe a "one-size-fits-all approach would be very harmful." Indeed - to their profits.
Via WSJ: Germany to Tap Brakes On High-Speed Trading
BERLINâGermany is set to advance a bill Wednesday imposing a spate of new rules on high-frequency trading, escalating Europe's sweeping response to concerns that speedy traders have brought instability to the markets.
The measure seeks to require traders to register with Germany's Federal Financial Supervisory Authority, collect fees from those who use high-speed trading systems excessively, and force stock markets to install circuit breakers that can interrupt trading if a problem is detected.
...
"The goal of the German law is to limit the risks associated with high-frequency trading," he said.
Germany's push comes as regulators and investors on three continents fret over the recent dominance of high-frequency traders, which often profit from paper-thin differences in stock and derivatives prices, and the role their computer programs may have played in some of the market's most frantic moments since the financial crisis.
In May 2010, in the so-called flash crash, the Dow Jones Industrial Average plunged 1,000 points before recovering most of its losses within hours. The exact causes of the selloff are disputed.
More recently, Knight Capital Group Inc. KCG +5.21% lost $440 million in a computer trading glitch...
... Germany hopes its bill will put pressure on other European leaders to support EU-wide regulation for high-frequency trading.
... establish the Parliament's position on a number of stringent new rules, including "speed bumps" for high-frequency trading.
These include the requirement for orders to rest on the exchange order book for a minimum of half a secondâan eternity for firms accustomed to trading in millionths of a secondâbefore they can be canceled or modified, and penalties for high cancellation rates.
On Aug. 1, France introduced a high-frequency trading tax as one of the three levies that comprise its financial-transaction-tax package.
In the U.S., regulators have struggled to get a grip on the issue. The Commodity Futures Trading Commission this year formed a group to define high-frequency trading in order to better track it, while the Securities and Exchange Commission has announced plans to build a "consolidated audit trail" that can monitor frenetic trading activity.
The SEC also is investigating whether some high-speed firms use special advantages provided by exchanges to gain an edge over ordinary investors, according to people familiar with the matter.
...
Industry advocates caution against regulations that could hamper the ability of traders to react quickly to market shifts and manage their risks.
Imposing caps on the number of trades or instituting order-to-trade ratios, as proposed in the German bill, could restrict traders from being able to revise their quotes, the price at which they buy or sell stocks, based on new information, they say.
...
"We think a one-size-fits-all approach would be very harmful," warns Remco Lenterman, chairman of the FIA European Principal Traders Association, which represents firms that trade their own capital.