1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
From what I gather this proposed CFTC funding mechanism would be very similar to how the SEC is funded here in the US (ie the fee would be very, very small). The CFTC is looking for an increase their budget to around $280 million this year. This is really a different animal than the usual transaction tax talk that is thrown around...
From the article:
"The transaction tax would mirror the self-funding structure of sister regulator the SEC, which levies a fee on each securities transaction amounting to about US$22.10 per US$1m for fiscal year 2014."
-Guru
On the FTT, the latest version I have seen is dated 5 March 2014,
http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm
which contains the proposal of 14 February 2013,
http://ec.europa.eu/taxation_customs/resources/documents/taxation/com_2013_71_en.pdf
Quote:
Also, currency transactions on spot markets are outside the scope of the FTT, which preserves the free movement of capital.
Spot forex can be traded anywhere so if it is not a global tax, trading will just move. That said the politicians and bureaucrats promoting the FTT have been too stupid to learn the lessons of the past, so anything is possible.
Its that time of year again...Dean Baker calling for a "modest" FTT:
http://www.theguardian.com/commenti...an-budget-vs-congressional-progressive-caucus
http://www.theguardian.com/commenti...an-budget-vs-congressional-progressive-caucus
Bob Pissani calls for a trading tax blast him on twitter. https://twitter.com/BobPisani
How to kill high-frequency trading:
http://www.cnbc.com/id/101503705?utm_source=dlvr.it&utm_medium=twitter
This is from Pisani's piece:
Isn't that obvious? If you really want to kill or cripple high-frequency trading, here are two suggestions:
Institute a "cancellation tax" for anyone putting in excessive bids and offers, that seem designed to "fake out" the competition, or
Eliminate payment for order flow, wherein exchanges pay traders to "make" liquidity (post bids and offers) and charge traders who "take" liquidity (those who hit the bids and offers).
It might seem right to institute a "cancellation tax" but the devil is in the details, in determining just how many bids and offers constitute some kind of market abuse.
http://www.cnbc.com/id/101503705?utm_source=dlvr.it&utm_medium=twitter
This is from Pisani's piece:
Isn't that obvious? If you really want to kill or cripple high-frequency trading, here are two suggestions:
Institute a "cancellation tax" for anyone putting in excessive bids and offers, that seem designed to "fake out" the competition, or
Eliminate payment for order flow, wherein exchanges pay traders to "make" liquidity (post bids and offers) and charge traders who "take" liquidity (those who hit the bids and offers).
It might seem right to institute a "cancellation tax" but the devil is in the details, in determining just how many bids and offers constitute some kind of market abuse.
Hind sight...ain't it grand. This is what he actually said at 2:30 mark:
<param name="type" value="application/x-shockwave-flash"/> <param name="allowfullscreen" value="true"/> <param name="allowscriptaccess" value="always"/> <param name="quality" value="best"/> <param name="scale" value="noscale" /> <param name="wmode" value="transparent"/> <param name="bgcolor" value="#000000"/> <param name="salign" value="lt"/> <param name="flashVars" value="startTime=000"/> <param name="flashVars" value="endTime=000"/> <param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/3000258588/code/cnbcplayershare" /> <embed name="cnbcplayer" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer" allowfullscreen="true" allowscriptaccess="always" bgcolor="#000000" height="380" width="400" quality="best" wmode="transparent" scale="noscale" salign="lt" src="http://plus.cnbc.com/rssvideosearch/action/player/id/3000258588/code/cnbcplayershare" type="application/x-shockwave-flash" /></object>
If he hears from viewers blasting him for saying it, he will most likely not say it again.
The purpose of this thread is to rapidly respond to entities that suggest a tax to ensure our voice gets heard as well.
Consider sending a message to Bob Pisani via twitter @ https://www.twitter.com/bobpisani