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financial transaction tax

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atlanta georgia
Trading Experience: Intermediate
Platform: Ninja Trader
Favorite Futures: ES
Posts: 5 since May 2014
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financial transaction tax

Europe is trying to get a financial transaction tax passed (10 countries) and it could happen here with a Democratic congress.

Here is what Europe is trying to do for derivitives (I assume futures would be included)

Derivatives account for more than half of the projected revenue, with 6.2 billion euros coming from exchange-traded contracts and 6.1 billion euros from over-the-counter trades, according to documents prepared for a meeting this week of officials from the 10 countries. Those figures are based on a tax rate of 0.01 percent for derivatives. At half that rate, total revenue would dip to 16.6 billion euros, according to the documents seen by Bloomberg.

Would this be on the notional value of a futures contract? If it ever gets passed here and its on the notional value I guess it would shut down the market. Bernie Sanders, Hillary had it as part of their campaign platform (in different forms) and there's another bill trying to get it here, although no immediate danger.

Does anyone know anything about this - how would it affect us small futures traders?

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