It's official: Merkel seeks German F.T.T. at NYSE

Discussion in 'Wall St. News' started by tortoise, Jan 14, 2012.

  1. nLepwa

    nLepwa

    Current tax of 0.1% proposed by France is too high.
    It would kill medium-term investing.

    For instance our main fund trades 1-2 times a month which is quite low. Still the tax would kill us.

    However a smaller tax (0.01% maybe) would help get rid of HFT and make the market more efficient.

    Ninna
     
    #51     Jan 16, 2012
  2. Wrong, wrong, and wrong.

    The tax no matter how small will significantly decrease liquidity.

    Both will be deadly to any market stupid enough to implement this.

    The 0.1% especially is because of CFD trading based on 0.1% commission schedules, so, thinking that that's transferrable to stocks, will kill the liquidity investors need to be able to participate in big moves. The only way the moves will swing if this tax hits from that point on will be down, and nothing else.

    They will lose millions of jobs, reduce GDP drastically more than the paltry incorrect estimate between 1.2% and 3.7%.
     
    #52     Jan 16, 2012
  3. tortoise

    tortoise


    Agree with bwolinsky.

    Also, taxes NEVER make a market--any market--more "efficient." That's not the purpose of a tax. In my experience, attempts to sell a tax with the argument that its implementation will render some economic activity more "efficient" are either disengenuous or ignorant.
     
    #53     Jan 16, 2012
  4. I read a post by Zerohedge that decimalization enabled bigger and better frontrunning than ever before. I.E. decimalization led to an adjustment of the VWAP that is used to buy stock. The VWAP goes higher, even though it should have been lower. So the liquidity you see is FAKE. (ex. flash crash).
     
    #54     Jan 16, 2012
  5. bpcnabe

    bpcnabe

    You read something??
     
    #55     Jan 16, 2012