Transaction tax in germany

[Marsupilami]

If German politicians were the only ones to call for the FTT, I wouldn't be worried, but that's not the case. It's a global debate.

In several countries, a variation of the FTT is already in place, e.g. UK, Ireland, Hongkong etc. "effecting" ( read: killing) mostly stock trading.

I wouldn't take this too lightly...given the recent bank/ EU country bail outs, the time may be right to finally impose such a tax.

 

[TraDaToR]

On a global scale, a transaction tax has much fewer chances to happen than 1 1/2 years ago when the UK was in favor of the tax and no alternative bank taxes had been proposed by the US and the IMF. Now, it's just basically France, Germany and ( Austria ) against the rest of the world.

The risk is just in the Eurozone, but even here countries like Czech Republic and Sweden can cause a problem. If it comes to law, it will be a real economic Trafalgar for France and Germany. They will lose the rest of their previous influence on markets, especially Germany and Eurex( France has always been worthless ).

 

[hippie]

Quote from Millionaire:

For eurostoxx50 futures it will be slightly more than triple.. for dax the cost of trading each contract will go up 10 fold as each contract has a higher notional value (25x7000) as opposed to eurostoxx (2800x10).

If the 0.01% applies to both buying and selling then by my reckoning this tax will generate about 2 billion euro a year in revenue from Euro Stoxx 50 futures alone.

And over 1 billion euros for dax futures.

I havent done the figures for shatz bobl bund etc.
But they probably going to be in the same league.

Obviously in real world they will never generate anything like this as the volume will dry up atleast 10 fold across german futures markets. And the products will also get poached to offshore exchanges (eg to the CME) and the liquidity will fall to effectively 0 in germany. (The EuroxStoxx 50 isnt even a germany only index, it is a pan european index, so i can see atleast that one moving out of germany very fast and eurex or the german goverment not being able to stop it moving either).

Market makers will have to be exempt to save the markets but retail day traders on eurex will be history unless they are exempt too.

Ideally anyone not holding overnight should be classed as a liquidity provider and be exempt (or subject to a much lower rate eg 0.001%), but that is wishful thinking on my part.

You are making the assumption that trading volume will stay the same with the tax. It may well not be.

 

[Millionaire]

Quote from hippie:

You are making the assumption that trading volume will stay the same with the tax. It may well not be.

Which part of 'Obviously in real world they will never generate anything like this as the volume will dry up atleast 10 fold across german futures markets.' didnt you understand?

 

[zxd]

Is anyone here actually German or live in Germany? I'm moving there for a few months to study German language and will be getting a residence permit. Apparently, I will be subject to German tax having that permit.

Can anyone tell me how trading stocks, futures, and currencies are taxed? Are they all taxed the same way until the 15% up to 56k Euro and 46% thereafter?

 

[zdreg]

Quote from hippie:

You are making the assumption that trading volume will stay the same with the tax. It may well not be.

"it may well not be" may? you are joking of course.

 

[short&naked]

Quote from ASusilovic:

No, it will move to Asia - where it is already moving in massive steps. Who is interested anymore in rigged markets a la USA ?

We are not.

You think the Asian markets aren't rigged???? LOL

 

[southall]

Wolfgang Schäuble, Germany’s finance minister, wants the European Union to take the global lead in introducing a financial transaction tax to curb speculative trading, along with tougher regulation of big banks and the “shadow” banking sector, such as hedge funds.
If the UK blocked agreement on such a tax in the full EU, he said in an interview with the Financial Times, the eurozone should press ahead on its own.

http://www.ft.com/cms/s/0/e1a2c6b2-02fe-11e1-899a-00144feabdc0.html#axzz1cJy1Jeah


The German government still pushing hard for this tax.. i hope Eurex got a plan to relocate trading outside the euro zone if this happens.

 

[GGB]

http://www.elitetrader.com/vb/showthread.php?s=&threadid=228133&perpage=6&pagenumber=9

 

[booked]

What will this do? Just make it so the big firms are the only ones who can afford to trade? Like outlawing guns.....just makes it so they're the only ones who have them, outlaws.