It must be election year in Europe as the "tobin Tax " has yet again appeared on our radars ?
James Tobin in the early seventies tried in vain to introduce this idea and most governments since have attempted to implement it as seeing the £££££$$$$ falling into their laps , luckily poiliticans are not businessmen/women .
Back in 2013/14 both France and Italy attempted to introduce a Financial Transaction Tax (FTT ) into their system BUT decided to use "honesty boxes " to collect their bounties , strangely instead of the millions promised they collected pennies and of
course the liquidity , volume and business vanished and traded elsewhere ! Sweden learnt their lesson overnight decades ago , they lost 70% over their trade overnight .
However if the market has to satisfy these government demands we do have a very suitable alternative .. .
We can finally introduce a financial CANCELLATION trading tax ? The market has suffered a false liquidity issue over the last decade with certain members cancelling over 90% of their orders with flashing liquidity and spoofing etc , which exchanges have
been guilty of protecting which has fractured the marketplace . Therefore this Financial Cancellation Transaction Tax (FCTT) will both protect the real investor and reduce the powers of the "ghost " liquidity providers . A holding period of x seconds would
be an acceptable non cancelled order ? Folks will argue that spreads will widen BUT algos will quickly rebrand and obviously cancel far less orders , governments will also feel they have achieved their objective in supplying their "Robin Hood tax " even
though their returns will again be pennies rather than notes !