High Frequency Traders May Be Spared Transaction Tax in Europe and U.S.

Oct. 25, 2011 - PRLog -- Golden Networking’s High Frequency Trading Leaders Forum 2011 Singapore (http://www.HFTLeadersForum.com), conference that will provide the most up-to-date overview of cutting-edge developments and insights to build a competitive advantage in high-frequency trading to investors and traders, will take place at the SGX Centre.

As high frequency trading continues to build momentum in Singapore, it has come under increased scrutiny in the United States and Europe. However, according to recent news, it appears that proposed taxes on high frequency trading won’t become law. According to AdvancedTrading.com’s Justin Grant, high-frequency trading has become quite the punching bag for overseas governing bodies in recent months, but for the time being it appears that those who rely on it may escape being taxed for it.

Last week the Madrid-based International Organisation of Securities Regulators said in a report that "many HFT strategies, coupled with high speed, high volume trading algorithms, could cause market prices to move away from fundamental values in the short term and impair the price discovery process that takes place on public and transparent markets."

The idea that high-frequency trading obscures the markets and causes extreme volatility led the European Commission to consider levying a 0.1 percent tax on the sale or transfer of a range of financial products. Derivatives trades, which are often used by institutional investors as a hedge against swings in commodity and FX prices, would be tagged with a 0.01 percent charge.

In addition to slowing down executions, the tax could also raise $78 billion a year according to the EU's projections. But as it stands now that tax is unlikely to become law in Europe since it requires unanimous approval from all 27 members of the EU.
Germany and France are leading the charge across the continent for the so-called Tobin tax, but media reports say that in addition to the U.K., the Czech Republic is also against it.

Meanwhile finance ministers from the world's 20 largest economies will be debating the concept of a global financial transactions tax in the coming months. But with the United States, Canada, and the U.K. standing in the way, the idea is unlikely to gain much traction.

High Frequency Trading Leaders Forum 2011 Singapore is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Upcoming Golden Networking's Forums and Business Receptions include:

•   High-Frequency Trading Happy Hour Chicago (http://hfthappyhourchicago.eventbrite.com), October 25, Chicago

•   High-Frequency Trading Happy Hour Hong Kong (http://hfthappyhourhongkong.eventbrite.com), October 27, Hong Kong

•   High-Frequency Trading Happy Hour Singapore (http://hfthappyhoursingapore.eventbrite.com), October 27, Singapore

•   High-Frequency Trading Happy Hour London (http://hfthappyhourlondon.eventbrite.com), November 3, London

•   Hedge Funds Happy Hour New York (http://www.hfhappyhour.com), November 8, New York City

•   High-Frequency Trading Happy Hour New York (http://www.hfthappyhour.com), November 8, New York City

•   The Speed Traders Workshop 2011 Singapore, "The Present and Future of High-Frequency Trading" (http://thespeedtradersworkshopsingapore.eventbrite.com), November 13, Singapore

•   High-Frequency Trading Leaders Forum 2011 Singapore, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://hftleadersforumsingapore.eventbrite.com), November 13-15, Singapore

•   Private Equity Happy Hour New York (http://pehappyhour.com), November 15, New York

•   The Speed Traders Workshop 2011 Hong Kong, "The Present and Future of High-Frequency Trading" (http://thespeedtradersworkshophk.eventbrite.com), December 12, Hong Kong

•   High-Frequency Trading Leaders Forum 2011 Hong Kong , "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://hftleadersforumhongkong.eventbrite.com), December, 12-14, Hong Kong

•   The Speed Traders Workshop 2011 Sao Paulo, "The Present and Future of High-Frequency Trading" (http://thespeedtradersworkshopsaopaulo.eventbrite.com), February 1, 2012, Sao Paulo

•   High-Frequency Trading Leaders Forum 2011 Sao Paulo, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://hftleadersforumsaopaulo.eventbrite.com), February 1-3, 2012, Sao Paulo, Brazil

Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".