About Democracy for NYC

Democracy for NYC (DFNYC) is committed to the ideals espoused by Democracy for America, the organization founded by Howard Dean, and the national network of local coalition groups dedicated to the same.

EndorsedLogo PlasticWe work both locally and nationally to ensure that fiscally responsible and socially progressive candidates are elected at all levels of government. We develop innovative ways to advocate for the issues that matter to our members and support legislation which has a positive effect in our communities.  We promote transparency and ethical practices in government.  We engage people in the political process and give them the tools to organize, communicate, mobilize, and enact change on the local, state, and national level.

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About Democracy for New York City

 

Tax to Discourage High Frequency Trading: Your Opinion?

 

Update:
Lee Shepard, writing in Forbes on Oct. 16, stated "The United States should adopt a financial transactions tax (FTT) to kill high frequency trading (HFT)..."  Click here to read the full article.

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The first anniversary of Occupy Wall Street coming up this Monday, Sept. 17, and OWS is teaming up with Act Up for a 7am rally for a Robinhood Tax. Related to that is the financial industry practice of high frequency trading.

Since the "flash crash" of May 6th 2010 in which the stock market plunged about 1000 points in minutes and then recovered, there has been a lot of focus on high frequency trading - a practice in which certain trading firms use sophisticated technology and algorithms that automatically trigger certain quick purchases and sales of stock. 

Advocates of a tax on high frequency trading suggest that placing a tax on it would be both fair and a solid revenue raiser because high frequency trading concentrates wealth, is not designed to provide capital and credit, but rather, to scoop large amounts of cash out of the market, and in some cases, allows high frequency traders to have access to market information sooner than other investors.  (Clarification: HFT would not be taxed directly; the idea is to have a general tax on financial transactions that is so small - fraction of a penny - that it would not discourage other investing, just the high volume computerized trading of HFT.)

Opponents of a high frequency trading tax state that the practice will still exist but will be moved overseas, and that it does not hurt small investors.  Is this a legitimate argument, or just something the 1% says to maintain insider trading practices and because of a knee-jerk reaction against any sort of tax or regulation?  It's not a rhetorical question - we want to know your opinion.  Please email us at This email address is being protected from spambots. You need JavaScript enabled to view it.

Here are some links:

Lee Shepard, writing in Forbes on Oct. 16, stated "The United States should adopt a financial transactions tax (FTT) to kill high frequency trading (HFT)..."  Click here to read the full article.

Global Economic Intersection:  The Great Debate: High Frequency Trading and Transaction Taxes

Wall Street Journal Article:  Mark Cuban: High-Frequency Traders Are the Ultimate Hackers

Forbes:  High Frequency Trading Doesn't Hurt Individual Investors

Think Progress:  High Frequency Trading Pioneer: Today's Trading Has Absolutely No social Value

Contact Information

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A local coalition group of Democracy for America since 2004

Democracy for NYC (DFNYC) is committed to the ideals espoused by Democracy for America, the organization founded by Howard Dean, and the national network of local coalition groups dedicated to the same.

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