I voted for him, and I don't deserve this. How could any sane person have voted for Romney. The only choice was Obama, and he has been a disaster. I think your not thinking very clearly.
From IB today. Interactive Brokers would like to inform clients of the Italian Financial Transaction Tax (IFTT) which comes into force on derivatives 1 September 2013. Key information regarding the tax is provided below Tax Rate: Varies based on the value of the transaction and the product traded, ranges between .00375 to 200 EUR per trade Tax Base: The tax is assessed to both the buyer and the seller of the derivative. Unlike the IFTT on stocks which was implemented in early 2013 there is no benefit for netted positions during the day Effective Date: The IFTT will be applied to trades of 2 September 2013 The following link provides additional information on the IFTT: link Interactive Brokers Customer Service
Prepare some popcorn. THIS will be interesting to watch. First time they try to tax dérivatives. I think there is a MM exemption but the volume drop should be drastic, nothing like on stocks. No long term investors to keep the market alive...
MIB futures were pretty thinly traded anyway. They might as well just turn off the matching engine when this comes into force. On the bright side it should give the rest of Europe something to think about as the negative effects will be pretty obvious. It's also a great opportunity for another exchange. CME FTSE MIB futures? They could take all the volume overnight if they have their act together.
Spreads to Widen on Index CFDs as Italy Embraces New Trading Tax FXCM, a leading multi asset broker that is listed on the New York Stock Exchange, sent a notification about the new FTT rulings via an email to its clients today. The notification gave details about the proposed changes that will be affecting the FTSE MIB, on the FXCM platform the main Italian Stock Index is defined as the ITA40. FXCM will widen the spread of the ITA40 by 10 pips (20 pips round turn) in order for the new levy to be paid. The FTT is to be paid by any client (regardless of their location) when transacting in Italian Equity Derivatives. Italy and the FTT The key points of the new law are as follows, from the official government website: The rates for taxable transactions will be 0.1% if traded on regulated markets or Multilateral Trading Facilities (MTF), or 0.2% if executed over-the-counter (OTC). However, only for the financial year 2013, the applicable rates will be 0.12% if traded on regulated markets or MTF and 0.22% if executed OTC; Derivatives contracts traded OTC will be subject to a fixed amount between EUR 0.01875 and EUR 200 depending on the type of contract and its notional value. If derivatives contracts are executed on a regulated market or MTF, the tax will be reduced to 20% of the original notional amount; http://forexmagnates.com/spreads-to-widen-on-index-cfds-as-italy-embraces-new-trading-tax/