Speed Trading Firms Most Threatened by Eu Transaction Tax

Summary

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LONDON (Reuters) - High-frequency share traders - often blamed for exacerbating market swings - stand to lose most if Europe adopts a tax on financial transactions, threatening up to a third of European market volumes.

A tax of 0.1 percent on each share or bond trade as proposed by the European Commission would kill the tiny margins that these firms make, making it questionable whether they would continue to generate the huge trading volumes they need to secure revenues and make money.

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Speed Trading Firms Most Threatened by Eu Transaction Tax

"The higher turnover rate (of HFT firms) will clearly be penalized by a financial transaction tax, for the very obvious reason that the frequency of turnover wil...

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