According to a press release by Futures Trading Academy, the latest pitch to all 27 Union members in Europe is aiming to generate over 50 billion pounds annually for the troubled European financial system. The financial transaction tax (FTT) is not actually a new concept. Taxation in the UK on shares and securities has been in place, and in various countries this tax has already been implemented. The proposal is causing a bit of a stir in many sectors. One in particular is ‘high-frequency’ investors.
To many outsiders that are not involved in high-frequency trading the tax may seem minimal, however, when you do the numbers it is obvious to see that this could be devastating to many who ride the slight profit margin line. “This tax whilst a good option for rebuilding Europe’s’ financial system, to the high frequency trader, it undeniably means a much less profit margin,” stated a speaker on the open forum.
There has been some debate as to how many high frequency traderswill stay involved in their trading, it is possible for them to take on another market. Technology is evolving by leaps and bounds, and tomorrow may lead to a new hot product.