"Critics also contend that a financial transaction tax would have damaging effects on trade volume ..... That is debatable ..... " What the hell are they smoking????? Did they look at what happened in Sweden??????
Austrian Finance Minister Hans Joerg Schelling said European efforts to agree on a common financial-transaction tax may fall apart... The tax had as many as 11 backers, but is now at risk of falling to just eight. http://www.dailynewsx.com/news/busi...ing-for-eu-push-on-transaction-tax-22779.html
Does anyone here know much about MiFid 2 and the effects on the prop industry? From what I can see it is going to severely hurt strategies that require a high utilisation of margin (STIRs traders, large inter market spreaders). How do these "regulators" get away with it? Id like to think i will be able to adapt and change my style but liquidity will be far lower and volatility much higher, the one thing they are trying to stop.
EU FTT on the back burner again http://www.automatedtrader.net/news/at/155159/ftt-on-the-back-burner-again
EU Transaction-Tax Plan on Brink as Belgium Inches Toward Exit http://www.bloomberg.com/news/articles/2016-05-04/eu-transaction-tax-plan-on-brink-as-belgium-inches-toward-exit
Hillary's position on the ftt? I was reading an article about a speech that Elizabeth Warren gave regarding wall street, etc. In the article it mentioned that Clinton is in favor of the ftt. Here is the quote: http://www.politico.com/story/2016/05/warren-attacks-trump-223541 "To be sure, the campaign's agenda overlaps with Clinton's Wall Street platform. Both are calling for taxes on financial transactions. They both want to close the carried interest tax loophole that benefits private equity and hedge fund managers." But upon further review it sounds like Hillary is in favor of some sort of tax on trade cancellations (ie quote stuffing). This info is from her own website: https://www.hillaryclinton.com/briefing/factsheets/2015/10/08/wall-street-work-for-main-street/ Impose a high-frequency trading tax and reform the rules that govern our stock markets. The growth of high-frequency trading (HFT) has unnecessarily burdened our markets and enabled unfair and abusive trading strategies that often capitalize on a “two-tiered” market structure with obsolete rules. That’s why Clinton would impose a tax targeted specifically at harmful HFT. In particular, the tax would hit HFT strategies involving excessive levels of order cancellations, which make our markets less stable and less fair. Is this the way you guy's interpret her version of the so called ftt? Thanks, -Guru
If the new government policy charges additional 0.25% for SELL transaction, then the following is (will be) changed. Let some trader have a seed of 100K with consistent winning logic of annual 30% compounded and he trade three times every month. A) Before 0.25% tax, his asset is supposed to grow 100*1.3^30 = 261999.6K after 30 years B) However with a new proposed 0.25%, he should pay additional 1.0025^3 = 1.007519 every month ( (1.0025^3)^12 = 1.094051 every year) Therefore B)'s return rate will be roughly annual 20% (30%-9.4%) and his asset is supposed to grow 100*1.2^30 = 23737.63 Finally the difference is 261999-23737 = 238262K and addtional tax amount 238262K has a ratio of 238262/261999 = 0.9094004. So the new tax takes 90% of previous return. Tell me if some calculation error. Of course the above is with NO 1040 income tax assumption.
http://www.archyxx.com/the-slow-agony-of-the-tax-on-financial-transactions/ http://news.newsdirectory2.com/eu-tax-financial-transactions-further-delayed/
Hillary is bought and paid for by Wall Street, so you can rest assure that Goldman and the banks will not be affected in ANY WAY with a FTT in her term(s). Anything she does will be passed squarely onto the retail guys like you and I.