7 ms·
You can do it based on time. Yes it there will still be some incentive to be faster, but the incentive will not be that great. And you can remove all incentive
by hristov 15y ago
You can do it based on time. Yes it there will still be some incentive to be faster, but the incentive will not be that great. And you can remove all incentive to be faster by simply increasing your buy price by a penny. This means that all the incentive for speed is less than one penny per stock.
This would result in much smaller incentive for speed and less money and energy spent on being faster, and more fair markets, etc.
- traversal 15y agoWhy do you think there will be less incentive for speed in the discretized case? The reward for being first in line will be exactly the same. And traders already have the option of advancing their price by a penny. The issue is that they are competing over hundredths of a penny.