Tue, 31 Jan 2012 04:03:50 GMT - High Frequency Trading Review
The French stock market, Europe’s second-biggest by value, may fall out of favor with investors after President Nicolas Sarkozy unveiled plans to unilaterally impose a 0.1 percent tax on financial transactions.
“Even if the tax isn’t high, market participants who have a choice of stocks trading in Paris or elsewhere will go elsewhere,” said Yves Maillot, the Paris-based head of investments at Robeco Gestions SA, which oversees $6.8 billion. “That’s what we can fear.”
Sarkozy, 57, who faces elections in a two-round vote in April and May, wants to make good on a pledge he made to impose such a tax when France last year held the presidency of both the G-8 and G-20 group of countries. He said Jan. 29 that France will impose the levy starting in August in spite of opposition from banks. The tax will apply to share purchases, including high frequency trading, and credit default swap transactions.
