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Panic with French Stamp Duty

5 comments / January 22, 2012

Not really an expert when it comes to French taxes. That’s okay as long as the only link is the tiny tourist tax. However, if you’re involved in trading French over-the-counter stocks and derivatives – you should take the time to figure out what’s happening at the moment.

See, there is this stamp duty tax in France. Used to be capped at EUR 5000, and only applicable for transactions with the existence of a “written deed” (“acte“). Nothing will change for regular executed trades on an exchange. But as of January 1st 2012 the law has changed. The scope of the law has been widened, and the cap is removed.

OTC trades in French stocks or options could be affected by this law. Nobody knows. Everybody is puzzled and this creates panic among the French brokers. Some brokers halted OTC trading altogether until clarifications from the French Tax Authorities arrive. Understandable, with the Sarkozy government viewing the financial world as the root of all evil.

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Financial Transaction Tax back on the table. For a few days.

11 comments / January 12, 2012

Brochures for a second house in the Swiss alps are taking a lot of space on my coffee table lately. Even checked the availability of “zugtrader.ch”. As of monday I’ve been seriously worried about this Financial Transaction Tax – with Merkel lining up behind Sarkozy and his pledge for the Tobin Tax. Sure, such a tax wouldn’t be rational and damage a fragile economy – but don’t count on French politicians to behave economical.

Would be kind of a nuclear option ; all derivative trading would vanish. Sure, large firms such as Optiver and IMC would survive elsewhere – but trading in Europe would be wiped off the map. Therefore, good to read the “Loch Ness Monster” will disappear again. Merkel was only sharing her personal opinion monday. She should start a website for personal opinions. Zugtrader.ch is still free.

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Trading holidays 2012

12 comments / January 1, 2012

Best wishes to all of you, hope you survived the weekend and nobody got hurt playing with fireworks. The year 2011 was quite a trading year. Two brief periods of market panic and elevated volatility levels all year long. No casualties among the ranks of market makers for a change. Alas, two brokers were forced to throw in the towel (Amstel and Aespen).

The year 2012 starts with January 1st being a sunday, but the market will close exactly twice as often as previous year. With closed markets I mean scheduled public holidays, not the frequent market shut down caused by system trouble at Euronext.

  • Friday 6 April 2012 (Good Friday)
  • Monday 9 april 2012 (Easter Monday)
  • Tuesday 1 May 2012 (Labour day)
  • Tuesday 25 December 2012 (Christmas)
  • Wednesday 26 December 2012 (Boxing Day)
In addition, markets will close early on December 24th and 31th. Same calendar applies for the Eurex, but with their foreign derivatives you may wish to double check here.

No more bullying of small market makers

9 comments / December 19, 2011

Euronext raised fees for small market makers. After three weeks in business, the decision is cancelled again.

The preferential class fee scheme for market makers has been removed from the price list as of December 1st, and the fees for market makers without liquidity provider roles doubled. Apart from not understanding the economic need to bully the small ones, raising fees at the start of a price competition with TOM is an interesting tactical move, a clear example of out-of-the-box thinking. At least I don’t get it.

Also at Euronext, the management can’t remember the rationale for doubling the fees for small market makers. Starting January 1st, the preferential class is back on the table again and the small traders can resume trading like nothing happend, against the old fee schedule. The notice states the fees will be raised again as of July 1st 2012. That’s not going to happen.

The official notice can be found here. Also fixed are some fee trouble with daily and weekly options.

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Beursplein 5 to open a cafe

56 comments / December 12, 2011

Some pretty local news now. Like I said before, Euronext has problems. It employs too many people, its hands are tied to political and national demands and is unable to compete against new contenders.

There is only one bright spot. The traditional exchange building on Beursplein 5 is a marketing dream. The Occupy moment underlines the value of a recognizable symbol in an electronic trading world with a lack of a physical market place.

The Christmass tree has been moved to the Dam square, but next year the building at the Beursplein will capture the attention again. It has been confirmed the exchange building will open a cafe for outside visitors. The heavily guarded building hosts an internal bar, and it will open doors to outsiders.

Instead of training excess staff to serve beer and lunch, the management of the bar will be in the hands of an external firm (rumour: Harkema). An even bigger contrast to the Occupy movement, the exchange will try to obtain a permit to use the square for an outdoor cafe. The latter will probably take some time, but planned kick off for selling lunch to the public is in Q1 2012.

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