choke35 

The problem with the EU FTT plan is that all EU residents plus all European assets, derivatives, and underlyings except for sovereign debt would be affected. So even moving the complete Eurex business to another legislation wouldn't be a solution for European residents nor for derivatives e.g. on the DAX.

steve2222 

I imagine the UK or Asia will pick up the instruments (or create their own replicas) and trade them on their own exchange. So non Europeans could still get access to trade without the FTT. But it is hard to see a way around it for the European traders, other than trading non European instruments on non European exchanges.

Perhaps the "plus" in "all EU residents plus all European assets, derivatives, and underlyings except for sovereign debt"
wasn't clear enough. It means that the current EU FTT draft plans to tax EU residents no matter what the place of execution
is and no matter if e.g. US index derivatives are concerned. So the only way to avoid the EU FTT (based on the discussed draft)
is trading non-EU assets as a non-EU-resident - or switch to our great and absolutely safe bunch of public debt and its derivatives.

My opinion if they bring this in.

It'll be the end of UKs membership of the EU as thet will leave under pressure from the city.

Eurex will end up in London.

DionysusToast 

My opinion if they bring this in. It'll be the end of UKs membership of the EU as thet will leave under pressure from the city. Eurex will end up in London.

As always the typical politician will wake up after the fact.
Just like in France with their complete FTT failure.

When volume tumbled, investors left the CAC in droves, FTT tax revenue was way below estimates,
and NYSE Euronext started a public discussion of closing down the now dispensible Paris branch and
shifting the rest of the French business to Amsterdam, suddenly the entire Grande Nation started to flap.

choke35 

As always the typical politician will wake up after the fact. Just like in France with their complete FTT failure. When volume tumbled, investors left the CAC in droves, FTT tax revenue was way below estimates, and NYSE Euronext started a public discussion of closing down the now dispensible Paris branch and shifting the rest of the French business to Amsterdam, suddenly the entire Grande Nation started to flap.

What was the outcome? Did France abolish their FTT?

steve2222 

What was the outcome? Did France abolish their FTT?

You still believe in politicians admitting a failure, don't you?

Nope, the FTT is still active, FTT tax revenues are still fractions of estimates, volume is still down ...
Euronext is still there - after political talks and a "solution" for the location (you can guess what that might be).

But what does a perfect politician do now?
He/she promotes his/her non-starter system as a role model that admittedly doesn't work for an individual country
for different reasons (that surely have nothing to do with the non-starters who passed the tax), but that will surely
work for the E(M)U and even more for the whole world.


P.S.: One exception: France abandoned the 75% income tax bracket after successfully driving more than 80% of
their income millionaires out of the country. Funnily enough the income millionaires who left as yet didn't return

Schelling Sees March Reckoning for EU Push on Transaction Tax - Bloomberg Business

Quoting 

Austrian Finance Minister Hans Joerg Schelling said European efforts to agree on a common financial-transaction tax may fall apart if not enough nations are willing to move forward by next month. At least nine countries must be on board for the tax plan to proceed under EU rules for “enhanced cooperation” when efforts among all 28 nations fail. The tax had as many as 11 backers, but is now at risk of falling to just eight, Schelling said in an interview in Brussels.

steve2222 

Schelling Sees March Reckoning for EU Push on Transaction Tax - Bloomberg Business

Think I must abandon a deep-rooted prejudice should the quota of halfwits in the EU really be only 8 out of 28 ...

If the UK leave the EU which seems like a real possibility, any FTT tax would just drive all the trading to London.

EU Transaction-Tax Plan on Brink as Belgium Inches Toward Exit - Bloomberg

steve2222 

EU Transaction-Tax Plan on Brink as Belgium Inches Toward Exit - Bloomberg

I saw this... didn't post it, as it was not yet on international press at that moment, local comments say, the Belgian government is not yet on one line. It is mainly the minister of finance that wants to pull the plug on this..

For your information, the Belgian government introduced begin of the year a kind of speculation tax, which now turns out to be a fiasco, and they have become very prudent on any further taxing transactions... they quote amongst other things it brings problems to sovereign debt as well

I think bottom lines it harms economy and financial stability, which is already precarious...
A EU initiative towards nothing in USA, will only one-sided harm the region...