EU Plans Transaction Tax Based on Traders’ Base, FTD Says

Discussion in 'Wall St. News' started by Dogfish, Sep 9, 2011.

  1. Dogfish

    Dogfish

    This isn't correct, you are charged on the product and looking at the article it will include anyone trading from america. So, If I lived in New York and traded a German product on their exchange I would pay the transaction tax in their current proposal. If I live in Germany and trade a US treasury bond from there via a German broker there is no transaction tax.

    The easiest was to impose this is at the exchange/clearer level so anyone trading on a European exchange from anywhere in the world will get billed regardless of where they live or sent the order from. Same way I pay "exchange fee" to cme but trade in Dubai. It would just be a bigger "exchange fee" which the exchange then passes to the gov.

    The option is for a US or Asian exchange to "steal" the product, set up an equivalent bund spec contract the cash will settle off. The liquidity will die in these products on their home exchanges regardless and the trading volume will move to whoever sets up that product on another exchange outside these laws.

    Same way the Swedish bond and option market lost 98% volume in 2 days after FTT was introduced and they were then traded in London.
     
    #11     Sep 9, 2011
  2. sheda

    sheda

    Weird, in all the talks I have seen they said it was down to residency not product otherwise that tax would be predictably easy to avoid, but hey if you are correct all every one needs to do is trade the right products and then tens of thousands of people will be able to avoid the tax at the click of a mouse...yea..that works....

    + newtricks - you are "IdIoT!":)
     
    #12     Sep 9, 2011
  3. joneog

    joneog

    It's almost as if they sit around thinking: "how could we make a bad situation worse?"
     
    #13     Sep 9, 2011
  4. Maybe I'm naive, but why not set up a limited company outside EU and trade as that company?
     
    #14     Sep 9, 2011
  5. +1
     
    #15     Sep 9, 2011
  6. Dogfish

    Dogfish

    http://uk.reuters.com/article/2011/09/09/uk-britain-g7-transactionstax-idUKTRE78842020110909

    <b>UK won't join euro zone transaction tax - Treasury</B>

    (Reuters) - Britain will not sign up to a euro area financial transactions tax, a finance ministry spokesman said on Friday, following reports that France and Germany have sent proposals for such a tax to the European Commission.

    "If the euro area would like to have a banks levy, that's a matter for them. The UK will not be part of any euro area tax," a Treasury spokesman told Reuters on the sidelines of a meeting of finance ministers of the world's wealthiest nations.

    The spokesman noted that Britain already had a levy on banks.

    Earlier on Friday the German and French finance ministers said in a letter sent to the European Commission that Europe should press ahead with the introduction of a tax on financial transactions despite the absence of a broader international consensus on the issue.

    :)
     
    #16     Sep 9, 2011
  7. forget it guys. EU is going to punish speculators. Game over for most of the retail traders, if this goes into effect.

    NYSE is talking about doing the same.

    Retail trading is dying faster than most people think.

    The game is no longer "Free" markets and the rules are being changed in the middle of the game.

    The GOV's world wide want to limit volatility and short sales. They are going to push Retail Traders out of the Game first. Then regulate the shit out of trading desk.

    Smart Traders have already left the industry and are making money hand over fist doing something else for a living.
     
    #17     Sep 9, 2011
  8. sheda

    sheda

    "Smart Traders have already left the industry and are making money hand over fist doing something else for a living."

    Such as?
     
    #18     Sep 9, 2011
  9. rew

    rew

    It's hard to believe the politicians are sincere when they say this tax won't hurt trading. The whole point of transactions taxes is to discourage short term trading, which for some reason people have decided is more evil than long term trading.

    There are lots of legitimate reasons to do short term trading. Option market makers have to buy and sell large blocks of stocks every day to hedge their books. If you like mile wide option bid/ask spreads you'll love the transaction tax.
     
    #19     Sep 9, 2011
  10. GATT

    GATT



    No, the whole point of transactions taxes is to get some easy money, that's all.
     
    #20     Sep 9, 2011