Both Sanders and Bloomberg have proposed a financial transaction tax. Will this kill HFTs like Hudson River Trading, Tower Research Capital, etc. #leetcode
Sanders is a jackass!
Gotta pay back the excessive gains somehow.
Sanders is an idiot. Socialist idiot
Why is this a bad thing? HFT brings zero benefit to society! So happy!
So? Where does it say they have to payback to the society. How many of us who get insane packages pay back to the society. Even then billionaraes like Bloomberg are giving all their money to the society fighting so many causes. But crazy for crazy Bernie every rich person is a demon
Not only would it kill HFT, it would kill most asset managers and wealth managers, and then hit banks hard as a result. Spreads on most products are well under the 0.5% proposed, so you'd see a massive reduction in trading volume and liquidity. Keep in mind, when you transfer money to a brokerage account like Fidelity, to get paid interest on the cash requires buying money market funds. Buying a 2 year T bill yielding 1.4% would cost 0.5% up front, ouch. Kill might be too strong of a word admittedly, I believe there is transaction tax in China for example but hedge funds are still able to operate, just with more difficulty. If this comes to pass, NYC is in deep s*** because it relies on the tax revenue from all the financial companies to survive, and most of that will disappear overnight.
I can understand Sanders doing this. Why is Bloomberg endorsing this? Last I checked his company is in NYC and in finance.
The proposed amount is much lower than 0.5% for derivatives (0.005%), so it may not be quite as bad. Bonds (your T bill example) would be 0.1%, so also not as catastrophic as 0.5%.