The report notes that HFT is not used for normal share trading in the UK, probably because there is a 0.5% stamp duty to be paid - Europe's best example of a financial transaction tax. They note that
"a significant proportion of the turnover in UK equity markets is made up of trading related to derivatives called ‘contracts-for-difference’(CFD). These are exempt from stamp duty and are thought to contribute to high and rising level of HFT in UK markets.In fact CFD trading is already so widespread in the UK that if all the CFD-related turnover (€1.3 trillion (£1.1 trillion)) were directed through stamp duty eligible trades, it would generate as much as €6.5 billion (£6 billion) in revenue."
All of this argues very strongly for introducing an FTT simply on the grounds that High-Frequency Trading needs to be kept under control. The Robin Hood Tax report also noted that the problem is set to increase with the rapid rise in the number of Exchange Traded Funds (ETFs) that were apparently behind the abilty of a "Rogue trader" to lose something like $2 billion for his employer UBS. The warning came too late for UBS, but the entire system needs to be protected from this insanity.