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TraDaToR
Registered: Dec 2006
Posts: 3774 |
07-12-12 01:10 PM
Nothing related, but in your view, what will be the outcome of the french tax coming Aug, 1st( now that the rate is 0.2% ):
- HFs targets anything french under the sun, the CAC40 crashes, it teaches the eurocrats a good lesson but France is now in the same situation as Spain.
- Everybody stops trading taxed instruments, volume drops, the government is bitter watching their "tax revenues" but nothing more.
I hope it will be the second scenario. The first would be too serious for the Eurozone.
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justrading
Registered: Apr 2011
Posts: 840 |
07-12-12 01:18 PM
Quote from TraDaToR:
Nothing related, but in your view, what will be the outcome of the french tax coming Aug, 1st( now that the rate is 0.2% ):
- HFs targets anything french under the sun, the CAC40 crashes, it teaches the eurocrats a good lesson but France is now in the same situation as Spain.
- Everybody stops trading taxed instruments, volume drops, the government is bitter watching their "tax revenues" but nothing more.
I hope it will be the second scenario. The first would be too serious for the Eurozone.
If my memory serves me well, the French have banned short selling as and when they have seen the need. If targeted, they simply do that and it takes away the profit from the market decline.
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d08
Registered: Aug 2008
Posts: 1367 |
07-12-12 01:32 PM
Quote from TraDaToR:
Nothing related, but in your view, what will be the outcome of the french tax coming Aug, 1st( now that the rate is 0.2% ):
- HFs targets anything french under the sun, the CAC40 crashes, it teaches the eurocrats a good lesson but France is now in the same situation as Spain.
- Everybody stops trading taxed instruments, volume drops, the government is bitter watching their "tax revenues" but nothing more.
I hope it will be the second scenario. The first would be too serious for the Eurozone.
Volume won't drop as banks will use the loopholes to trade without it. Politicians will hail it as a victory but they won't mention that the tax won't be raising almost any revenues - that piece of information will be buried so deep, no one will find it.
Main street will be ignorant and happy as long as the "bad bankers" are paying, not realizing they are the only ones paying this tax.
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TraDaToR
Registered: Dec 2006
Posts: 3774 |
07-12-12 02:58 PM
Quote from d08:
Volume won't drop as banks will use the loopholes to trade without it. Politicians will hail it as a victory but they won't mention that the tax won't be raising almost any revenues - that piece of information will be buried so deep, no one will find it.
Main street will be ignorant and happy as long as the "bad bankers" are paying, not realizing they are the only ones paying this tax.
Only market making activities( and passive stat arb )can still be traded tax free by the banks. They will sure continue to quote the same B/A spread but there won't be for sure the same volume of trading due to the number of active counterparts who will cease trading, beginning with HFs and HFTs that are also trageted by the HFT tax.
Really good remark about short selling ban. They can interfere with a HF induced crack.
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zdreg
Registered: Oct 2003
Posts: 8330 |
07-12-12 03:18 PM
Quote from TraDaToR:
Only market making activities( and passive stat arb )can still be traded tax free by the banks. They will sure continue to quote the same B/A spread but there won't be for sure the same volume of trading due to the number of active counterparts who will cease trading, beginning with HFs and HFTs that are also trageted by the HFT tax.
Really good remark about short selling ban. They can interfere with a HF induced crack.
Really good remark about short selling ban. They can interfere with a HF induced crack.
please explain.
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