Would Bernie Sanders Kill Trading As We Know It?

FTT's will never happen in US markets. They have been proven to adversely effect market quality and the decision makers understand this.
 
fon said:
FTT's will never happen in US markets. They have been proven to adversely effect market quality and the decision makers understand this.
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Thats right Fon, FTT has been tried in other countries, hugely lowers tax revenue and massively increases volatility. But unfortunately I don't have the faith you do in the intelligence of A/ voters B/ politicians.

Most people think Wall Street = Bad because they watched the Big Short and know what CDS stands for
 
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tommo said:
Thats right Fon, FTT has been tried in other countries, hugely lowers tax revenue and massively increases volatility. But unfortunately I don't have the faith you do in the intelligence of A/ voters B/ politicians.

Most people think Wall Street = Bad because they watched the Big Short and know what CDS stands for
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Yes, great point. Capital gravitates to the lowest cost regime. A FTT will result in massive capital outflows to jurisdictions that do not have one.
 
rmorse said:
On a positive side, this legislature will Never pass these taxes into law with this current mix of Democrats and Republicans.
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Then again, thanks to Odumbo's unprecedented use of executive orders to bypass Congress and our Constitutional legal process, Bernie may attempt to install FTT by executive order.

So long as Congress, SCOTUS, and the DOJ let the president get away with legislation via fiat, any tyranny is possible.

I say "F' your executive orders"!!

:(
 
There are surely workarounds if it was implemented? Thankfully i believe the capital markets are bigger than a few crack pot socialists.

I don't think US stock futures could relocate (unless CME bought up a non US exchange) as they own all the IP/Copyright on Dow Jones, S&P etc so would have a real issue making them able to be hedged with US underlying stocks. But I think all the commodity and FX futures trading will leave the US for EU/ Asia exchanges.
 
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As i understand it the tax is on all exchange based instruments and securities. This would include futures and options also.

It will be a 0.01% tax on the face value. So a 1 lot bond future that has a face value of $100,000 would have an additional $10 on every futures trade.
 
rmorse said:
I don't normally post my political opinions on ET. So this will be the 1st time.

I’m so tired of politicians creating laws they don’t understand. Creating regulations they don’t understand. Promoting business through laws they don’t understand. Then, blaming a capitalist society for trying to make money with those laws they’ve created. It also annoys me when they group everyone together that works on “Wall Street.” Not all of us sold CDSs and CDOs. Not all of us broke the law. Many of us are hardworking people that risk our capital or provide an important service to their clients. Penalizing “Wall Street” is hurting the hard working people that provide services there and does not hurt the large banks and brokers. To them, it’s just a fine.

Bob
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I agree with you that the financial transaction tax is a bad idea and vilifying Wall Street is unproductive and wrong.

But there is a place for the government to regulate the financial industry. El Arian had a nice interview on Bloomberg radio where he discussed the failure of capitalism's evolution: first it was an agrarian economy, then industrial, then service, then information, now finance. And the finance level has proven to not work. The government should create incentives to unwind this. The smartest kids out of school go to finance. It's changing now. 50 years ago they went into aerospace and automotive.

As a nation our competitive edge is being lost because the smartest guys are playing a form of video poker all day long.
 
i am nobody said:
I was speaking about daytrading. That's why I replied to a part of your posting only.
But for the rest I agree with you.
In general politicians have no clue about the financial markets. Even many people with an economical education have no idea how important a liquid shortterm market is. The only short term trading they should kill is HFT as it has no real value for the markets. They don't bring any real liquidity, they just steal everywhere small amounts from the people who provide the real liquidity.
From what I read it will increase cost but not by 10 fold. But I must admit that I did not follow this anymore for a long time. For futures they spoke about 0.01% in the country where I lived at that moment. Would be around 20$ RT. So 20$ less profit per trade.
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Who cares about day traders? They mean no harm to the markets. They are hard working ants who provide liquidity to the markets and taxable income to the brokers. It's not up to Sanders to say who is a true investor and who is not based on their positions holding time. Day traders should be left alone to churn away the financial capitals. They are respected market participants. These are economic uncertainties that drive volatility up not day traders.
 
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