4 ms·
>1% tax on the full amount of every trade. Fuck off worthless HFT mega brain drain. Fuck off short termism in markets. I think a much better solution would be
by fuoqi 5y ago
>1% tax on the full amount of every trade. Fuck off worthless HFT mega brain drain. Fuck off short termism in markets.
I think a much better solution would be to mandate "slower" exchanges, i.e. exchanges would accumulate orders in a hidden queue and resolve them for example every 1 second, after that it would publicly publish all orders submitted to the last tick. For most market participants this change will be virtually unnoticeable, but it would eradicate HFT and all microseconds shavings associated with it.
- nix23 5y agoWhy not? You pay taxes on every deal you make in the real world. And since you buy a part of a company that should be tax-worthy too. Tick-based exchange would probably just increase the problem (better prediction for ~HFT..or better call them HF-prediction then), but hey i really don't know, both solutions are better then none, i guess.
- BobbyJo 5y agoIf we can put a sales tax on bread then we can put it on stock. Totally agree. I think, in general, taxes/credits are much better solutions to problems of economic incentives because they only change the incentives as opposed to the structures of the market.
- Redoubts 5y agoA lot of basic groceries are sales tax exempt.
- aldanor 5y agoThat would create more opportunities for all sorts of gaming (e.g. place orders before update, remove them right after, etc). Since fast players would still exist, they would react first to each slow update, which means all other participants would always see a book that's pretty much always outdated, and very heavily so. HFTs are not a universal evil, they increase market efficiency and they pay for it.