Trading Shares: Banking Equivalent and Company Checks

trading shares: Cum-ex transactions work by trading shares at high speed on or just before the dividend record date the day the company checks its records to identify shareholders and then claiming two or more refunds for capital gains tax which had in fact only been paid to the state once, according to The Guardian. Some financial experts have likened the practice to the banking equivalent of parents claiming child benefit for multiple children when they only have one. The two British citizens, Martin Shields, 41, and Nicholas Diable, 38, are accused of having defrauded the German state of 447.5m 405m from London's banking district with so-called cum-ex trading schemes, a complex shell game of share transactions. The trial, which is scheduled to last until January next year, is being followed with interest across Europe because many more investment bankers, working for clients including Deutsche Bank, Barclays and Sweden's SEB, are suspected to have practised cum-ex deals between 2001 and 2012, when legislators closed the loopholes that made the practice possible. Estimates of the cum-ex scandal's total financial damage to the German state range from 5bn to 55bn. The trial in Bonn could for the first time rule that the practice was already illegal in the years after the turn of the century. (news.financializer.com). As reported in the news.