Kamala wants a 0.2% transaction tax

[helpme_please]

What requires U.S. stocks to be traded only on U.S. exchanges? In fact a number already are traded already on a number of other exchanges, and it's trivial for them all to dual list if the financial incentive is there.

French stocks and italian stocks have FTT. Currently, there are some French stocks and Italian stocks which are listed in overseas exchanges. When foreigners trade in these stocks in the overseas exchanges, they still have to pay FTT. Therefore, using them as precedents, it makes no difference even for dual-listed stocks. Everyone has to pay FTT wherever they are traded.

If the same applies for U.S stocks when FTT is imposed, do you think this makes FTT more viable and more likely to be implemented in U.S?

 

[Sig]

French stocks and italian stocks have FTT. Currently, there are some French stocks and Italian stocks which are listed in overseas exchanges. When foreigners trade in these stocks in the overseas exchanges, they still have to pay FTT. Therefore, using them as precedents, it makes no difference even for dual-listed stocks. Everyone has to pay FTT wherever they are traded.

If the same applies for U.S stocks when FTT is imposed, do you think this makes FTT more viable and more likely to be implemented in U.S?

Its not clear to me how Italian law implementing an FTT could be binding on a company in, say Singapore running a stock exchange? I'm guessing this might happen on those French stocks if they trade on an exchange in another EU country and that's how they enforce compliance? I'd love to get an example from you of a specific stock and which out of country exchange it trades on, then I could research the idea a little more. Its a good point, I just don't know enough about your example to speak to it intelligently right now.

 

[helpme_please]

Its not clear to me how Italian law implementing an FTT could be binding on a company in, say Singapore running a stock exchange? I'm guessing this might happen on those French stocks if they trade on an exchange in another EU country and that's how they enforce compliance? I'd love to get an example from you of a specific stock and which out of country exchange it trades on, then I could research the idea a little more. Its a good point, I just don't know enough about your example to speak to it intelligently right now.

French Total oil company (symbol TOT) trading on NYSE as ADR. Right on U.S doorstep.

 

[Sig]

French Total oil company (symbol TOT) trading on NYSE as ADR. Right on U.S doorstep.

Thanks for that example, that's interesting. I'm not sure how France is able to compel the ADR issuers to collect the FTT, I'd have to ask one of the insiders here about the legal structure that allows for that. Interestingly the stamp tax in the UK has led to about 1/3 of UK shares trading as ADRs on U.S. exchanges so I wonder why they wouldn't have done the same thing.

 

[helpme_please]

Thanks for that example, that's interesting. I'm not sure how France is able to compel the ADR issuers to collect the FTT, I'd have to ask one of the insiders here about the legal structure that allows for that. Interestingly the stamp tax in the UK has led to about 1/3 of UK shares trading as ADRs on U.S. exchanges so I wonder why they wouldn't have done the same thing.

Another example is Prada on Hong Kong exchange.

I guess derivatives like CFDs which avoid stamp fee/FTT will become more popular if FTT is implemented.

 

[ajacobson]

Commissions and fees
For foreign ordinary shares traded directly on foreign exchanges
(by country, in the local foreign currency)
Country Currency Used Online Trades Commission Broker-assisted Trades Commission Local broker fee Additional Fee
Australia Australian dollar 32 70 .1% of principal
Belgium Euro 19 50 .1% of principal
Canada Canadian dollar 0 56 Varies
Finland Euro 19 50 .1% of principal
France Euro 19 50 .1% of principal 0.2% on buys
Germany Euro 19 50 .1% of principal
Hong Kong Hong Kong dollar 250 600 .1% of principal
Italy Euro 19 50 .1% of principal 0.2% on buys
Japan Japanese yen 2,000 6,000 .1% of principal
Netherlands Euro 19 50 .1% of principal
Norway Norwegian krone 160 400 .1% of principal
United Kingdom British pound 9 30 .1% of principal

This is retail and you see the FTT for France and Italy, but the overall costs may make you yearn for the US FTT. The layout is electronic commission - broker-assisted commission -.1% of principal is the cost of the foreign broker. There is a currency conversion fee - This is from Schwab on Foreign ordinary shares.

 

[Bomp]

Thanks for that example, that's interesting. I'm not sure how France is able to compel the ADR issuers to collect the FTT, I'd have to ask one of the insiders here about the legal structure that allows for that. Interestingly the stamp tax in the UK has led to about 1/3 of UK shares trading as ADRs on U.S. exchanges so I wonder why they wouldn't have done the same thing.

The ADR represents shares issued in France, held by French custodial agent and registered in a French exchange. Thus if you buy a Total ADR someone has to buy those shares in
France to back the “receipt.”

 

[Math_Wiz]

This is from Briefing.com. Notice how they say the gamification of the stock market "is not sitting well with fundamentally-oriented investors".

Sadly, I'm wondering if this might give added incentive for the Dems to enact their FTT.

 

[listedguru]

View attachment 250027

This is from Briefing.com. Notice how they say the gamification of the stock market "is not sitting well with fundamentally-oriented investors".

Sadly, I'm wondering if this might give added incentive for the Dems to enact their FTT.

And so it begins:

https://www.yahoo.com/huffpost/redditors-myth-stock-market-214040661.html

The situation, however, does demand a public policy solution. The Redditors have revealed an absurdity by being absurd. The appropriate response is not to demand an orgy of further absurdity, but to do something sensible.

The simplest solution is a financial transactions tax ― a small fee attached to every financial bet. This tax will either discourage reckless stock betting and reduce the volume of what is a mostly economically wasteful activity, or generate a great deal of revenue that can be devoted to more useful activities.

We have plenty of roads and bridges to repair and a vastly outdated transportation system. Redistributing money from hedge funders in the Hamptons to a high-speed rail network or a national public housing program would do more for growth and productivity than all the shorts and put options in New York.

 

[Math_Wiz]

Actually, on further thought... a 0.25% tax would be miniscule for these Redditors. GME is up like 1000% in a matter of days. What's a quarter-percent?? So perhaps these Reddit gamers won't stir up an FTT, although an FTT is probably already in the pipeline anyways. Whatever.