Regulators in the United States and overseas are cracking down on computerized high-speed trading that crowds today’s stock exchanges, worried that as it spreads around the globe it is making market swings worse.
There is a very simple fix. Limit trade speeds to those possible to an experienced trader - say 10 seconds. Or even 1 a minute between trades. Would remove a lot of volatility if a stock could only trade 60 timss per hour - and would eliminate time arbitrage as well as make the traders thing twice about trading when they are locked for 10 seconds from another trade. (there are only so many authorized traderes).
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James Byrd
There is a very simple fix. Limit trade speeds to those possible to an experienced trader - say 10 seconds. Or even 1 a minute between trades. Would remove a lot of volatility if a stock could only trade 60 timss per hour - and would eliminate time arbitrage as well as make the traders thing twice about trading when they are locked for 10 seconds from another trade. (there are only so many authorized traderes).