STA Opposes Proposed Transaction Tax

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25 February 2009

(New York: February 23, 2009) The Security Traders Association (STA), the leading advocacy and education organization for professional equity traders in the U.S., today stated its strong opposition to a bill introduced by Congressman Peter DeFazio, H.R. 1068 the “Let Wall Street Pay for Wall Street’s Bailout Act of 2009.” The bill aims to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.” The proceeds of this tax are to pay for the “net cost” TARP and emergency Federal Reserve programs.

In an open letter, the STA registered both its strong opposition and the rationale for its position. The STA demonstrates that bill is based on erroneous premises and misstatements of fact and could lead to serious disruptions in the capital markets at a time of national crisis.

A synopsis of the STA’s position follows:

Click here to view the press release in its entirety.

About The STA

The STA is a worldwide professional trade organization that works to improve the ethics, business standards and working environment for our members. There are approximately 6,000 members, all engaged in the buying, selling, and trading of securities. Members participate in STA through 28 national and international affiliate organizations and represent the interests of the trading community and institutional investors. The STA provides a forum for our traders, representing institutions, broker-dealers, ECNs, and floor brokers to share their unique perspectives on issues facing the securities markets. They work together to promote their shared interest in efficient, liquid markets as well as in investor protection.