Can the financial tax they want to impose kill trading ?

[masterm1ne]

Quote from Bob111:

make my word-they will implement FTT. i expect it to be in 2012. it will kill the rest of us,who was able to adapt and survive current HFT rape.ALL big "pro's" will be exempt. for those who didn't realize this yet-it's their game, and if you did not noticed it yet-"they" doing everything for last 10 years or so to kick out YOU and general public from stock market...George Carlin once again-"it's a big club..and you ain't in it. "
"they" don't want you there. they will trade on both sides your pension plans all day long.once they completely control the markets-you will have no choice but to accept any fees that they will come up with. that's their goal.get this trough your head-it's not their money. traders,bots-they get paid,money managers-they get their salary too. regardless to spreads,liquidity,execution quality or even their performance. give me a reason,why they need you in this game?

trade,enjoy the game while it last..cause it will be over soon. for most of us,who trade from home..

That was hard to understand, but this doesn't make any sense. To exclude the public would mean less profit potential for everybody, however you want to look at it. The big banks love stealing from the general public. Why would 'the big boys' want to exclude us?

Second, income from trading is already taxed... I claim my p&l every motherf*ing april... WTFFFFFFFFFFF

 

[Visaria]

I very much doubt this tax will be implemented. It would end Wall Street and drive all trading to Asia.

Even your politicians are not that dumb. Our prime minister has said he would only implement it if the rest of the whole world implements it, knowing full well that is not going to happen.

 

[EMRGLOBAL]

(from 0.01 to 0.05)
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It sure will narrow the Penny wide spread you get for Stocks, Options et all. Just another notch taken away in the name of the "CONSUMER PROTECTION" group.

Trading is dead for the most part.

 

[Bob111]

Quote from adamm2:

That was hard to understand, but this doesn't make any sense. To exclude the public would mean less profit potential for everybody, however you want to look at it. The big banks love stealing from the general public. Why would 'the big boys' want to exclude us?

Second, income from trading is already taxed... I claim my p&l every motherf*ing april... WTFFFFFFFFFFF

name at least ONE event,law,rule whatever that did make US market more transparent,better,easier access to public in past 10 years.. ONE... does the PDT rule was better or worse fpr public? how about NMS? dark pools? tens of ECN's, ability to place sub penny orders on fron of yours?

 

[Bob111]

i remember the times,when i place an order -it was instantaneously visible in the book. now it's take good half sec if not more before i can see it. cause it have to pass so many various checks..all while boys on the other side can place 20000+orders\submissions\modifications\cancellations PER SECOND.
when it comes to access to US markets for general public-we are moving backwards at full speed. have you noticed that? now ask yourself -why? i agree with you-the more avg. joe gamblers-the better. but why they keep pushing us out? why PDT was never reviewed,studied or abandoned? imo-it's absolutely useless. i would let trade anyone from US with 1000$ on their account. the more meat-the better..

i've been on various auto actions few times..a lot of them have very strict rules for entry. you have to be dealer,proper ID, ony one person with you is allowed, etc..but on one auction-everyone is welcomed to see cars,watch the trading do whatever..guess who having bigger sales?

 

[eusdaiki]

Quote from Visaria:

I very much doubt this tax will be implemented. It would end Wall Street and drive all trading to Asia.

Even your politicians are not that dumb. Our prime minister has said he would only implement it if the rest of the whole world implements it, knowing full well that is not going to happen.

Many exchanges in Asia already have this kind of tax. There's still trading going on there. The tax is reflected in the spread and trading goes on... business as usual.

HK has 10 basis stamp tax,
Singapore has 5 basis...

 

[tomdavis]

For those of you who haven't been closely following financial transaction taxes (FTT) events around the world, here's a summary:

1. The European Union's "Impact Assessment Report" of the proposed EU FTT showed that it would reduce EU GDP, cost thousands of jobs and would actually decrease total tax revenue collections because taxes lost from the contracting economy and decreased employment would be greater than the FTT taxes collected. After reading the report, the Czech Finance Minister called the tax "economically irrational." The Swedish Finance Minister also rejected the tax and said that Sweden would not participate. The UK, Ireland and Malta have also stated their intentions to oppose the EU FTT. An EU or EZ FTT requires unanimous consent, so it appears unlikely in the near-term.

2. The Obama administration came out against the FTT saying that treasury department studies showed that most of the cost would be borne by retail investors and not financial institutions. The Obama administration is proposing an alternative type of tax similar to what they use in Sweden. Lael Brainard, Treasury Department Undersecretary for International Affairs, recently said: “We're very much in sync with Europe on their goal of ensuring that large financial institutions bear their fair share of the burden, but the US-proposed 'responsibility fee' would better deter the kind of risky behavior that led to the crisis as well as ensure that large financial institutions and not retail investors bear the burden."

3. Ten of the G20 nations have said "no" to the FTT: the US, Canada, Mexico, the UK, Australia, China, India, Russia, Saudi Arabia and South Korea. Argentina and Brazil said they will only support the FTT if it’s world-wide, including Switzerland, Hong Kong and Singapore, all of whom have said they will not introduce any new transaction fees or taxes into their system. In addition, Japan and Italy have expressed reservations and are unwilling to commit to the FTT at this time. That leaves only 6 of the G20 nations in full support of the FTT.

In the short-term, an FTT in the US or Europe appears unlikely. In the long-run, anything can happen. Remain vigilant.

 

[eusdaiki]

Quote from tomdavis:

For those of you who haven't been closely following financial transaction taxes (FTT) events around the world, here's a summary:

1. The European Union's "Impact Assessment Report" of the proposed EU FTT showed that it would reduce EU GDP, cost thousands of jobs and would actually decrease total tax revenue collections because taxes lost from the contracting economy and decreased employment would be greater than the FTT taxes collected. After reading the report, the Czech Finance Minister called the tax "economically irrational." The Swedish Finance Minister also rejected the tax and said that Sweden would not participate. The UK, Ireland and Malta have also stated their intentions to oppose the EU FTT. An EU or EZ FTT requires unanimous consent, so it appears unlikely in the near-term.

2. The Obama administration came out against the FTT saying that treasury department studies showed that most of the cost would be borne by retail investors and not financial institutions. The Obama administration is proposing an alternative type of tax similar to what they use in Sweden. Lael Brainard, Treasury Department Undersecretary for International Affairs, recently said: “We're very much in sync with Europe on their goal of ensuring that large financial institutions bear their fair share of the burden, but the US-proposed 'responsibility fee' would better deter the kind of risky behavior that led to the crisis as well as ensure that large financial institutions and not retail investors bear the burden."

3. Ten of the G20 nations have said "no" to the FTT: the US, Canada, Mexico, the UK, Australia, China, India, Russia, Saudi Arabia and South Korea. Argentina and Brazil said they will only support the FTT if it’s world-wide, including Switzerland, Hong Kong and Singapore, all of whom have said they will not introduce any new transaction fees or taxes into their system. In addition, Japan and Italy have expressed reservations and are unwilling to commit to the FTT at this time. That leaves only 6 of the G20 nations in full support of the FTT.

In the short-term, an FTT in the US or Europe appears unlikely. In the long-run, anything can happen. Remain vigilant.

On point 2. Any idea what they mean by the tax "used in Sweden"?

 

[Bob111]

Quote from eusdaiki:

Many exchanges in Asia already have this kind of tax. There's still trading going on there. The tax is reflected in the spread and trading goes on... business as usual.

HK has 10 basis stamp tax,
Singapore has 5 basis...

how big is financial sector in Asia(relative to other sectors and whole economy(and what countries are you referring to anyway? cause most of them are spit size compared to US and china is obviously is nowhere similar to US ))? whatever the countries you are referring to-are they have similar structure as US?

business as usual for whom? retail?

 

[zdreg]

Quote from eusdaiki:

Many exchanges in Asia already have this kind of tax. There's still trading going on there. The tax is reflected in the spread and trading goes on... business as usual.

HK has 10 basis stamp tax,
Singapore has 5 basis...

you are wrong about business as usual.. there is no day trading business comparable to what exists in in the US.