2 ms·

Repeating my reply from elsewhere in the thread, individuals and corporations aren't making tradable decisions at subsecond intervals. Few even make tradable de

Repeating my reply from elsewhere in the thread, individuals and corporations aren't making tradable decisions at subsecond intervals. Few even make tradable decisions at intraday intervals. Given that randomization need only apply to orders placed simultaneously at identical prices, I don't see how it would increase market frictions enough to significantly limit the utility of markets in price discovery, long-term investing, and the raising of capital. Submit a limit order at a price you find fair and wait your turn or just take whatever's available on the other side of the order book. Markets have long functioned productively and efficiently on slower, human-speed timescales without the need for day traders or intrahour market makers.

Maxion 3y ago
The alternative is we take this current mini-game to its conclusion and find some limit in physics and/or materials science that causes delays between markets to hit a floor. Then we're doing the same thing, applying a minimum tick rate to trading, except to achieve this tick rate you have to spend X to get the technology. For these sort of things were you know there will be an end with a minimum achievable delay, it just makes way more sense to arbitrarily decide it's X and call it a day and let humanity use its resources on better things, than let this waste of resources continue.
- consilient 3y ago
  > Then we're doing the same thing, applying a minimum tick rate to trading, except to achieve this tick rate you have to spend X to get the technology. Not quite, because the next step is being physically closer to the exchange, and there's only so much real estate to go around.
wbl 3y ago
The broker dealers were robbing their customers blind. 12 cent spreads, high trade fees, rooms full of people using hand signs that in case of a dispute couldn't be reviewed. Decimalization was great.

Maxion 3y ago

The alternative is we take this current mini-game to its conclusion and find some limit in physics and/or materials science that causes delays between markets to hit a floor. Then we're doing the same thing, applying a minimum tick rate to trading, except to achieve this tick rate you have to spend X to get the technology. For these sort of things were you know there will be an end with a minimum achievable delay, it just makes way more sense to arbitrarily decide it's X and call it a day and let humanity use its resources on better things, than let this waste of resources continue.

consilient 3y ago
> Then we're doing the same thing, applying a minimum tick rate to trading, except to achieve this tick rate you have to spend X to get the technology. Not quite, because the next step is being physically closer to the exchange, and there's only so much real estate to go around.

wbl 3y ago

The broker dealers were robbing their customers blind. 12 cent spreads, high trade fees, rooms full of people using hand signs that in case of a dispute couldn't be reviewed. Decimalization was great.