The rise of trading quote spam
High-frequency quoting that has skyrocketed recently, leading some in the US to think it might be time for a financial non-transaction tax similar to the one in France. The French will also impose a tax on traders who submit too many unfilled quotes.
Donald B. Marron is director of economic policy initiatives at the Urban Institute. He previously served as a member of the President's Council of Economic Advisers and as acting director of the Congressional Budget Office.
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And according to another nice chart from Nanex, it’s high-frequency quoting that has skyrocketed, not trading.
The number of unexecuted quotes, many allegedly not intended to be executed, has thus skyrocketed.
France recently took steps to try to deter the rise in quotes. In addition to a financial transactions tax it, France will also impose a tax on traders who submit too many unfilled quotes.
In short, France will levy a financial non-transaction tax.
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