Transaction tax in germany

[TraDaToR]

Yes but a BMW doesn't hold Germany debtor of a liability like a german bund does. It's tricky. The more I think about it, the more I realize how hard this crap will be to enforce. It won't just be a loss of revenues, it will be a straight humiliation at every level.

The funniest part will be that they won't be able to repeal it easily, 'cause the FTT Enforcement squad will be some true syndicated government workers" that have a right to job stability in public services" and will defend themselves against the disparition of the FTT... I am already buying the popcorn...D

 

[slumdog]

Quote from TraDaToR:

Yes but a BMW doesn't hold Germany debtor of a liability like a german bund does.

As futures trader in more concerned about futures which are hedging instruments and dont pay any interest, and shouldnt be confused with the real thing.

 

[squeeze]

An EU transaction tax is not a done deal. With an unresolved currency crisis and elections in 2012/13 it could well still be overtaken by events, delayed or eventually watered down until it doesn't really affect anyone significantly. The uncertainty from all of this will still be damaging whatever ends up happening.

 

[tomdavis]

It looks like Germany is giving up on the FTT for now. They're saying they'll only do it if it covers all 27 EU countries. Not a chance of that since the UK, Sweden, Malta the Czech Republic and others have adamantly said "no."

http://diepresse.com/home/politik/eu/721784/Finanztransaktionssteuer_Berlin-will-EUweite-Einigung

Google translation from German:

Financial transaction tax: Berlin wants EU-wide agreement

06.01.2012 | 12:13 | (DiePresse.com)

The German government refuses to go it alone in the introduction of a financial transaction tax. France wants vorspreschen here alone. Germany wants to introduce the tax in all 27 EU states.

Germany, unlike France rejects a unilateral action in the financial transaction tax from. The German Federal Government to continue to strive to introduce the levy within the 27 EU states, government spokesman Steffen Seibert said on Friday in Berlin. "That is our goal." At this point must first be made ​​clear.

France is considering press ahead with the controversial tax on financial transactions. President Nicolas Sarkozy was willing to lead by example, said his special advisor Henri Guaino BFMTV the transmitter. According to the French newspaper "Liberation" Sarkozy assumes the risk that Germany would not follow so fast consciously.

The German Chancellor Angela Merkel (CDU) and Nicolas Sarkozy arrive in Berlin on Monday for talks. It is also about to implement the decisions of the EU summit in December. Sarkozy and Merkel had placed the introduction of an EU-wide financial transaction tax with emphasis on the EU agenda. Major European partners such as Britain and Sweden but not yet playing.

 

[squeeze]

I have a feeling the French will cool off on the idea once the elections are out the way and openly blame Britain for not being able to proceed.

 

[Specterx]

Quote from newtricks:

That's exactly right.

However you have to wonder had the speculation not got totally out of hand through HFT/Algo trading would we be going down this road.

Transaction taxes have nothing to do with HFT or algo trading. They have everything to do with the Eurozone bond market revolt and the conviction that whenever a market does something you do not like, it's out of control and must be reigned in via taxes, regulations, etc. Just like short-sale bans, they're a combination of political posturing, economic ignorance, and 'fuck you' revenge-seeking on 'speculators' alleged to be responsible for the crisis. And just like short-sale bans, they do nothing but worsen the state of the market.

 

[athan00]

banks rules the world... taxes on the futures/forex etc willl always be 0 or very very low... its a very big big business

 

[southall]

Looks like some sort of FTT is coming to Germany.. probably second half of 2013 or early 2014.

I reckon they will definitely apply 0.1% on stocks. So day trading German stocks is likely to be finished unless they decide retail is exempt.

But will they also apply a 0.01% tax on derivatives given that it is not going to be full EU 27? This could effect hundreds if not thousands of prop traders in europe and around the world.

I doubt it, but you never know. The socialists in europe are fanatical about the FTT, i would not put anything past them.

If they do apply 0.01% on derivatives, will Eurex move to switzerland completely, they are already partly based there i think.

Scratch that, i just looked it up, the Swiss Exchange sold its 50-percent share in Eurex earlier this year

If it does get passed on derivatives, either Eurex move to london or chf, or they will lose those contracts to other exchanges outside the FTT zone.

Scary stuff.

 

[TraDaToR]

Quote from southall:


Scratch that, i just looked it up, the Swiss Exchange sold its 50-percent share in Eurex earlier this year

Scary stuff.

Smart move from the Swiss. They know Eurex is pretty much done with the upcoming FTT.