Bye Bye Eurex DAX et al.

the irresponsible and incompetent leaders at EU keep peddling the tobin tax agenda and today sarkozy and merkel met and said they plan to proceed with it as soon as march this year.

it looks like they want to increase unemployment and worsen the debt crisis in the region.

according to my estimations the tax will represent 1 or 2 ticks for each FDAX transaction. this will be an invitation to leave to the vast majority of operators there.

http://www.telegraph.co.uk/finance/...-push-for-Tobin-tax-despite-German-split.html

 

You will have to trade cfd on www.lmax.com if you want to trade the top 30 german shares.

 

I don't think there will be any major change as far as futures are concerned. Both trade matching system and settlement facility are already based in Switzerland - outside the catchment zone of the proposed tax. Further, market-makers will be excluded from the tax as usual.

 

Maybe this explains why Eurex dont seem to be very concerned about the FTT.

 

so you think FDAX volume will be exempt after the FTT is put in place?

 

If FDAX is trading is based in Switzerland, then traders like those in London and Switzerland and the US should be exempt.

But volumes in the FDAX could still fall, as individual traders could be caught based on any residency rules they introduce and be forced to
abandon short term trading unless they move country. In other words short term traders and funds in the Germany could be prevented from trading all derivates anywhere in the world unless they pay the FTT on each transaction.

Its all quite uncertain at the moment as nobody knows what the exact rules are going to be.

 

I can offer a proxy. you pay me 1% of the tax you would otherwise pay and I execute your trades on your behalf from london