Media | 14 October 2009 11:30
Baader Bank AG / Finance
14.10.2009
Dissemination of a Media Release, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Unterschleissheim (Germany), 14 October 2009
Baader Bank AG, Germany's leading specialist in securities trading, has
issued a warning about the negative consequences of introducing a stock
exchange turnover tax. 'By introducing a stock exchange turnover tax we
would be doing investors a disservice,' said Uto Baader, Chairman of the
Board of Directors, at an industry conference held jointly by the
Bundesverband der Wertpapierfirmen an den deutschen Börsen e. V. (BWF -
Federal Association of Investment Firms on the German Stock Exchanges) and
the International Capital Market Association (ICMA), which took place at
Baader Bank's head office in Unterschleissheim today.
A tax on all stock exchange transactions would lead to securities
transactions being shifted to off-exchange trading and therefore to an
outflow of liquidity. 'That would be terrible news for the markets, the
quality of pricing and the transparency of trading,' continued Baader.
Stock exchange trading is a well-balanced mix of the three elements of
efficiency, transparency and governmental supervision. 'This
tried-and-tested system would be weakened, because a stock exchange
turnover tax would dry out the stock exchanges,' Baader warned. The
introduction of a stock exchange turnover tax is currently under
consideration within the European Union. Even the German Christian
Democratic Union/Christian Social Union parties (CDU/CSU) no longer
fundamentally oppose the stock exchange turnover tax proposed by the German
Social Democratic Party (SPD).
Meanwhile, Baader proposed using the mechanisms of the stock exchange
system to help combat financial crises. For example, the introduction of
mandatory stock exchange trading for structured, fixed-interest products
based on mortgages or ABS structures could serve as a type of early warning
system for future crises. At the same time, the product standardisation
necessary for stock exchange trading would tend to lead to higher liquidity
and thus to better risk assessment. 'Regulated stock exchange trading and
the disclosure duties associated with it are of themselves a method of
ensuring a high degree of transparency and the ability to track
transactions for the benefit of the market, investors and the supervisory
authorities,' Baader added. According to Baader, this increases the
probability that fraud, abuse and undesirable developments can be
discovered at an early stage or prevented altogether. The stock exchanges
perform the function of an early warning system in such cases. In his
opinion, if it had been mandatory to trade toxic securities on the stock
exchange, the extremely high risk associated with them would have attracted
attention. 'At least we would have been spared that junk on the scale we
experienced,' said Baader.
Thomas Spengler
Leiter Unternehmenskommunikation
Baader Bank AG
Postfach 1102
85701 Unterschleissheim
Tel: +49 89 5150-1030
Fax: +49 89 5150-291030
Mobil: +49 160 7188830
E-mail: thomas.spengler@baaderbank.de
14.10.2009 financial News transmitted by DGAP
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Language: English
Company: Baader Bank AG
Weihenstephaner Str. 4
85716 Unterschleissheim
Deutschland
Internet: www.Baaderbank.de
End of News DGAP-Media
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