I had a look at CLS's website where I found a press release published on the 6th January 2012 which talks about the scale of foreign exchange transactions handled by CLS in 2011. I quote
"In December, CLS settled an average daily value of US$4.56 trillion, down slightly on November (US$4.63 trillion) due to the holiday season. Average daily volumes during December were also down at 737,443 (November 2011: 840,405), this is, however, an increase of 18.8% over the same period in 2010.
For 2011, average daily volumes settled were up 3% on 2010 (2011: 820,495 vs 2010: 792,900) and average daily values were up 17% (2011: US$4.8 trillion vs 2010: US$4.1 trillion)."Let's assume 250 trading days a year. That's 1200 trillion dollars for 2011. Very conveniently, CLS published a report in February 2011 called "CLS market share" in which they estimate that they handle 68% of foreign exchange transactions - based largely on comparing their numbers with the results of the BIS Triennial Report. That means that we can assume that the global total was around 1800 trillion dollars for 2011.
CLS also proudly boasted that on Wednesday 21st September 2011 they broke all previous records
"Alan Bozian, CEO of CLS Group and President and CEO of CLS Bank International, said "The total value settled was US$8,992 billion and CLS Bank was able to settle this with a total pay-in requirement of US$54 billion""Congratulations.
I defy anyone to explain why it would not be perfectly reasonable to put a 0.1% Financial Transaction Tax on this activity. This sort of pointless trading, presumably involving a large percentage High-Frequency Algorithmic trading, could be massively reduced without having any impact on the functionning of the real economy. And if the traders continued, then that would generate 1.8 trillion dollars of much needed revenue for governments.
I invite all the directors of CLS to explain to the 99% why we pay 20% Value Added Tax on most transactions we make, whereas CLS customers pay only a small fee to CLS. I actually know the truthfull answer: "There is no VAT to pay on foreign exchange transactions, because it doesn't add any Value".
Here are the names of the Senior Management and the Directors. Perhaps they will find my blog when they Google their names. I look forward to hearing their comments.
Senior Management Team
|Alan Bozian||Chief Executive Officer, CLS Group Holdings; President and CEO, CLS Bank International|
|Peter Slater||Deputy Chief Executive Officer, CLS Group Holdings; Chief Executive Officer, CLS Services Ltd.|
|Sankar Aiyar||Chief Technology Officer|
|James Holdcroft||Chief Legal Officer|
|Naresh Nagia||Chief Risk Officer|
|Richard Kerschner||Head of Strategic Initiatives|
|Kathryn Herrington||Head of Human Resources|
|Chris Power||Chief Financial Officer|
|Rachael Hoey||Director of Business Development|
|Sean Daly||Programme and Service Delivery Director|