Dear Mrs. Clinton,
Congratulations on your announcement to take on the HFT gremlins.
Google News has a bunch of stories on your announcement and I am sure today's water cooler gossip at the prop firms will be all about your efforts to save America.
However, I looked through your site but found no details on this plan.
Can you provide some specifics?
Is the tax on just equities? Is she also going after futures, options, and\or forex?
Is it on all transactions, or just transactions that are held less than x time, or just on canceled orders?
If it is just on equities, then day trading will move to the futures markets - which would be good for us.
How do you envision operationalizing this tax? This is going to be tricky. If possible, please put together process chart so that we can understand the software needs that are to be implemented in order to monitor, tax, collect, audit this activity.
Whether this tax is to be implemented on just equities or across all asset classes, there are going to be unintended consequences.
Is the idea behind the tax to shut down HFT, or to collect a tax? If you want to collect a tax then have you thought about creating registration classes for firms that do over x trades per year and simply taxing them an annual fee?
If the idea behind the tax is to shut down HFT then why not shut it down?
Trying to regulate behavior of naked capitalist profit and loss corporations, uh I mean 'persons', by taxing them on innumerable transactions may just create a cat and mouse game that will create its own bureaucratic cottage industry of oversight, which will be just another layer of governmental bloat that we have to pay for, and deal with.
If you want to shut down HFT, then see if you can get the support to shut down HFT - and then shut down HFT.
If you to regulate HFT then regulate HFT.
But if you want to layer on some tax on transactions cuz it sounds like you are laying down the law and governing for the little guy, then please think this through - and please don't forget to publish the details.
If you have any questions please stop by the next time that you are campaigning in Vermont and we can chat on the front porch.
My wife will make us some chili.