Just so I know,when you say 'retail day traders' are you talking about the IB & Velocity lot who already pay crazy rates?
Rats, stray dogs and the homeless are going to take over the highrisers of Frankfurt, should this tax ever become law without any exceptions. Time to learn Mandarin or Cantonese, I guess.
Thanks for a piece of (rare) factual info! "Demise" is a strong word. The opinion I voiced originally and stand by is if the transaction tax goes ahead the way it's planned currently, German exchanges will loose volume in a number of popular instruments including futures and stocks. Stop putting words in my mouth. I never said they would go out of business. It seems that you see only 2 mutually exclusive options: 1) German exchanges will go out of business; 2) German exchanges will grow and prosper for foreseeable future. A third route like slow stagnation for a few years doesn't seem to occur to you. Regarding specifically Eurex, it's partnership between SIX Swiss exchange and Deutsche Börse with headquarters in Zurich. Moreover, they wholely own ISE in the US. As an electronic-only venue they may find it easier than it seems to list some of their products in a venue outside Germany if commercial and political circumstance warrant it. That cannot be said of Deutsche Börse. Listing an stock in a foreign jurisdiction is more complex, expensive (then a future) and requires cooperation of the stock issuer. I can certainly last long in this discussion with you. Seeing everything as either black or white masks most details in a picture from a viewer.
1 euro each side is what i pay for a DAX contract using IB unbundled rate, hardly a crazy rate. Paying an additional 20 euros in tax (im assuming this tax will be applied to both the buy and sell) is a massive extra cost. Even if it only applies to one side, paying 10 euros extra, is still a 500% increase in my commision costs.
Your words not mine. Clearly you think the end is possible for Eurex - or at least you did on page 2 before the flip/flop. Now after some thought you know you're wrong and there is a 99% chance they continue and continue well. As if they are going to go out of business - only a true idiot or amateur would think that.
2 Euro a R/T is a shit rate. At the professional (where we are) clearers 1 Euro a R/T is on the high side.
The transaction tax is actually worse for traders whos business models require low commision rates, unless they can get an exemption ofcourse. Im not a scalper.. i make about 10 day trades a day.. so paying 2 euros per contract as opposed to prop firm rates is not a huge issue for me. However if this tax applies to me it will eat a big chunk of my profits.