similar to HR1554 sponsored by Rep. Mary Flowers
a FTT to combat high frequency trading would consist of a Financial transaction tax of:
0.02% of the underlying or notional value of contracts traded on the CME(including the CBOT) and the CBOE – 2 cents per $100 of underlying value
2012 notional value on the CME alone was $805 trillion.
The tax would be imposed on stock, futures, swap, credit default swap, and options contracts.
It would not include transactions involving securities held in retirement or mutual fund accounts.
The rate proposed (2 basis points) is much less than commonly found among markets with FTTs.
Assuming even a 50% decline in trading, it would raise $50 – 80 billion annually.