Vedder Thinking | News Sam Tyfield Quoted in Financial News Article on Proposed HFT Tax
July 25, 2013
Sam Tyfield, a Partner in Vedder Price's London office and a member of the firm's Investment Services and Finance & Transactions groups, was quoted in a Financial News article titled "Traders Attack Plans for UK Tax on HFT." Senior traders and analysts have strongly criticized plans for a UK financial transactions tax (FTT) on high-frequency trading (HFT). Several issues have been raised with the proposed FTT, including the application of the tax on the average profit made on a high-frequency trade and the already high fees associated with HFT in the United Kingdom. Mr. Tyfield questioned the issue of average profit: “Is it the average profit for UK-based HFT shops only or HFT trading on UK platforms? Calculating an 'average' level of profit would be extremely difficult. Is this the difference between the price they buy and sell at or does it take into account trading and non-trading costs of those transactions? Do you look at the published yearly P&L account, and if so, at which line?”
More research on HFT and its effects has been proposed and welcomed by practitioners. Indicating his support of additional research, Mr. Tyfield said, “In accepting that something needs to be examined and its pros and cons weighed-up, the committee appears to be accepting that all obstacles need to be understood and evaluated before coming to a decision.”
To read the full interview, please click here (login credentials required).