EU Plans Transaction Tax Based on Traders’ Base, FTD Says

Quote from sheda:

The only thing that matters is where you live. If you live in Germany and for example they were the only country to impose an FTT, as your living in Germany it does not matter where you trade, you can trade the German markets with a German broker or a foreign market with a foreign or German broker you are liable for the tax either way, if you live out side of Germany you can trade the German markets FTT free.
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This isn't correct, you are charged on the product and looking at the article it will include anyone trading from america. So, If I lived in New York and traded a German product on their exchange I would pay the transaction tax in their current proposal. If I live in Germany and trade a US treasury bond from there via a German broker there is no transaction tax.

The easiest was to impose this is at the exchange/clearer level so anyone trading on a European exchange from anywhere in the world will get billed regardless of where they live or sent the order from. Same way I pay "exchange fee" to cme but trade in Dubai. It would just be a bigger "exchange fee" which the exchange then passes to the gov.

The option is for a US or Asian exchange to "steal" the product, set up an equivalent bund spec contract the cash will settle off. The liquidity will die in these products on their home exchanges regardless and the trading volume will move to whoever sets up that product on another exchange outside these laws.

Same way the Swedish bond and option market lost 98% volume in 2 days after FTT was introduced and they were then traded in London.
 
Quote from Dogfish:

This isn't correct, you are charged on the product and looking at the article it will include anyone trading from america. So, If I lived in New York and traded a German product on their exchange I would pay the transaction tax in their current proposal. If I live in Germany and trade a US treasury bond from there via a German broker there is no transaction tax.
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Weird, in all the talks I have seen they said it was down to residency not product otherwise that tax would be predictably easy to avoid, but hey if you are correct all every one needs to do is trade the right products and then tens of thousands of people will be able to avoid the tax at the click of a mouse...yea..that works....

+ newtricks - you are "IdIoT!":)
 
http://uk.reuters.com/article/2011/09/09/uk-britain-g7-transactionstax-idUKTRE78842020110909

<b>UK won't join euro zone transaction tax - Treasury</B>

(Reuters) - Britain will not sign up to a euro area financial transactions tax, a finance ministry spokesman said on Friday, following reports that France and Germany have sent proposals for such a tax to the European Commission.

"If the euro area would like to have a banks levy, that's a matter for them. The UK will not be part of any euro area tax," a Treasury spokesman told Reuters on the sidelines of a meeting of finance ministers of the world's wealthiest nations.

The spokesman noted that Britain already had a levy on banks.

Earlier on Friday the German and French finance ministers said in a letter sent to the European Commission that Europe should press ahead with the introduction of a tax on financial transactions despite the absence of a broader international consensus on the issue.

:)
 
forget it guys. EU is going to punish speculators. Game over for most of the retail traders, if this goes into effect.

NYSE is talking about doing the same.

Retail trading is dying faster than most people think.

The game is no longer "Free" markets and the rules are being changed in the middle of the game.

The GOV's world wide want to limit volatility and short sales. They are going to push Retail Traders out of the Game first. Then regulate the shit out of trading desk.

Smart Traders have already left the industry and are making money hand over fist doing something else for a living.
 
"Smart Traders have already left the industry and are making money hand over fist doing something else for a living."

Such as?
 
It's hard to believe the politicians are sincere when they say this tax won't hurt trading. The whole point of transactions taxes is to discourage short term trading, which for some reason people have decided is more evil than long term trading.

There are lots of legitimate reasons to do short term trading. Option market makers have to buy and sell large blocks of stocks every day to hedge their books. If you like mile wide option bid/ask spreads you'll love the transaction tax.
 
Quote from rew:

The whole point of transactions taxes is to discourage short term trading...
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No, the whole point of transactions taxes is to get some easy money, that's all.
 
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