It’s Time for a Tax to Kill High Frequency Trading

It’s Time for a Tax to Kill High Frequency Trading

Posted: 18 Oct 2012 01:44 AM PDT

It’s frustrating to know that there’s a simple solution to a serious problem but no one seems willing to do the obvious.
Tax maven Lee Sheppard in an article at Forbes
describes how transaction taxes could very quickly put a brake on numerous undesirable activities: high frequency trading, the explosion in derivatives, and overuse of repo financing. You might collectively think of these things as “junk liquidity” or “junk trading”.http://www.nakedcapitalism.com/2012/10/its-time-for-a-tax-to-kill-high-frequency-trading.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29