&gt; The tax is tiny (0.1% on most transactions, 0.01% on derivatives)<p>What&#x27;s tiny about 0.1%? The amount of money that would suddenly be leaking out of a big mutual fund when it rebalances or reconciles at the end of the day could end up being huge.<p>The amount of buying and selling something like a Vanguard index fund has to do to track its index with precision is probably pretty impressive, but it&#x27;s not the kind of weird HFT which annoys people. Introducing inefficiencies into that process is something I cannot believe EU regulators really intended... did they?<p>Everyday investors lose, the taxman wins, and to what end? It just seems kind of stupid.