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N.J. Bill Reduces Proposed Tax on High-Speed Trade Processing

  • New plan focuses on data firms in bid to soften opposition
  • NYSE, Nasdaq among opponents of tax on trading in the state
RF markets stress trader
Photographer: DragonImages/iStockphoto

New Jersey lawmakers seeking to tax high-speed trading scaled back the proposed fee in a bid to overcome opposition from financial firms that have threatened to move operations out of state.

A revised draft of the bill obtained by Bloomberg would impose a temporary tax of a hundredth-cent per trade, down from an earlier bid to levy a quarter-cent tax. The fee would be paid by “high-quantity processors of financial securities,” meaning firms that collect and store data. And under the new plan, the tax would end after two years.