Registered: Apr 2002
01-13-09 02:37 PM
jd7419 is right. In the UK they have this but let's be clear, you don't get exempt by being "a trader in securities" defined as trading a lot. You have to be a regulated entity. Very big barriers to entry.
Ever noticed that there are hardly any independent full time traders over there and those that do exist are trading European futures, currencies or US stocks through a US broker.
Notice how "spread betting" is big for the retail chump in the UK? They were invented to get around this tax and get the little guy in the game. These "CFDs" are really perpetual single stock futures that give the little guy leverage but with bid-ask spreads the size of the grand canyon. They are gambling products.
It all depends on how they do this. My guess is they'll follow the UK example which will put the independent traders out of business but not the regulated institutions and that will include the newly regulated hedge fund industry. It's pretty depressing.