Financial Times – US markets braced for trading tax grab from Democrats

Financial Times – US markets braced for trading tax grab from Democrats
Democratic politicians have proposed a variety of financial transaction tax proposals on trades of stocks, bonds and derivatives. Vanguard, the $3.8tn fund house, has lobbied against transaction taxes, believing that “A tax ostensibly aimed at Wall Street would ultimately be detrimental to Main Street.” Hillary Clinton’s plan is to tax “HFT strategies involving excessive levels of order cancellations.” Bill Harts, CEO of Modern Markets Initiative says that cancelling and replacing orders is important for determining fair prices. If the aim of the proposal is to stop spoofing, that has already been outlawed, he says. “It seems redundant to put a tax on something that’s illegal. People who are spoofing should be subject to prosecution,” he adds.