If Congress won’t act to curb derivatives speculation (and fund his own agency) with a transaction fee, Bart Chilton will.

Commodity Futures Trading Commission member Bart Chilton plans Wednesday to propose a transaction fee for derivatives markets, an idea that has been floated for years but has never gained traction in Congress….

“Heck, who’da thunk five years ago that a hoax Twitter feed would lead to another market meltdown moment,” Chilton plans to say Wednesday, according to a prepared copy of his speech to the Energy Bar Association.

A fee of $0.0006 per transaction could raise as much as $300 million a year, which would cover the CFTC’s budget and serve as a disincentive to high-speed traders, Chilton said. The fee wouldn’t apply to hedgers using the markets to lay-off commercial risk, he said.

“If you’re using our markets like a slot machine, you’re gonna contribute to the oversight and enforcement services that need to be part and parcel to markets,” Chilton said.

CFTC Commissioner Proposes Derivatives Transaction Fee [WSJ MoneyBeat blog]
U.S. regulator seeks tax for fast-speed traders [Reuters]

Comments (4)

  1. Posted by Guest | May 1, 2013 at 5:25 PM

    I actually think this is a great idea.

  2. Posted by broseph | May 1, 2013 at 6:09 PM

    If anybody manipulates the futures market this guy will join up with Wilford Brimley to drown him in a "scuba accident."

  3. Posted by big99 | May 2, 2013 at 2:48 AM

    Chilton's joining the Stones tour, right?

  4. Posted by Tarding | May 2, 2013 at 9:18 AM

    And the real hedgers will pay with spreads wider than the space between his ears.