Even Illinois is trying to get on FTT

DarthSidious

DarthSidious

From Bloomberg

When will this madness end? Never. Because there will always be delusional people

The Illinois proposal would impose a tax of $1 per contract for transactions where an agriculture product is the underlying commodity and $2 per contract for everything else, including futures and options. The bill exempts trades in retirement accounts and those involving a mutual fund.

Regarding the tax’s effect on trading costs, “this is an 800 percent increase on the traders that trade on our exchange today,” Duffy said. “Would they move their business? Absolutely.”

Duffy said CME has the flexibility to leave the state, skirting the tax. CyrusOne Inc. recently agreed to buy the company’s primary data center just outside Chicago -- the facility where the exchange in essence now lives. CME is now allowed to use any of CyrusOne’s data centers. “If we need to leave Illinois because of any irrational decisions coming out of the state legislature that could affect our business, we have 29 data centers to choose from,” he said.
More...
 
CME can easily relocate if that happens and suck billions of $$ out of Chicago.

It's not like the pits matter any more, so it's just a matter of setting up servers in an office in a less taxed/regulated state.
 
Hmm, lets see. There are how many options exchanges, 13? I think I will send my orders to the CBOE and pay a surcharge of $2 per contract. If the CBOE stayed in Illinois they would have a total of ...... zero business. Or they can move and take all the jobs with them and pay no taxes at all. Brilliant idea!
 
Snowball's chance it passes but it might actually be best if it did. As pointed out, CME/CBOE would simply move out of the state and the whole thing would be an utter failure. Any failure is ammo against a similar move anywhere else.
I did get one nugget out of the article that I'm curious to hear opinions on. According to the article "Hillary Clinton’s proposal isn’t a levy on all trades, but penalizes traders who repeatedly submit and then retract their orders." I don't know her platform enough to know if that's actually what she's advocating for (or if she could or would pass it if it was), but curious to know everyone's thoughts on this, staying away from the slippery slope arguments and focusing on that idea itself?
 
You must log in or register to reply here.
Back
Top