Important detail: the fines mentioned in the article are from the exchanges, not the government. On one hand, this sort of trading probably exacts some amount

Important detail: the fines mentioned in the article are from the exchanges, not the government. On one hand, this sort of trading probably exacts some amount of reputational toll on said exchanges, at least to the extent that the practice becomes publicly known. On the other hand, it definitely provides them with material gains, as the fees they charge are typically on a per-share basis.