Here’s Why the NYSE and Nasdaq Got Crushed This Week

NYSE Euronext (NYSE:NYX) and Nasdaq OMX Group (NASDAQ:NDAQ) stocks took a hard hit this week after plans for a European financial transaction tax had been laid out.

The  President of the European Commission President, Jose Manuel Barroso, presented a 57 billion euro ($77.6 billion) tax plan on financial transactions including trades on shares, bonds and derivatives. Expected to be implemented in 2014 as a means to have the financial sector share in the tax burden, financial experts and trade association have been quick to criticize to it, saying it will affect volatility, penalize long-term savers and hinder growth.

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The European Commission’s news crushed shares of both NYSE Euronext (NYSE:NYX) and Nasdaq OMX (NASDAQ:NDAQ). The other exchange operators didn’t fare much better: CME Group (NASDAQ:CME), CBOE (NASDAQ:CBOE), and IntercontinentalExchange (NYSE:ICE) alsp got hammered. Let’s see if they bounce back next week.