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TFA: "They worry that this microsecond-scale competition between algorithms is socially wasteful" I would LOVE to see a stock market that (a) time-penalizes l

by dheera 2y ago

TFA: "They worry that this microsecond-scale competition between algorithms is socially wasteful" I would LOVE to see a stock market that (a) time-penalizes large orders -- 1 share trades in a microsecond, 10000 shares takes a week to execute OR (b) adds a random time delay to all orders in the range of [0,60] minutes for corporations, [0,10] minutes for residential traders, and [0,1] minutes for people who have provably low income This will restore opportunities to real humans and drastically reduce the advantages that institutions and robots have.

kevin_thibedeau 2y ago
IEX runs with similar goals in mind to ban HFTs with special access and level the playing field. https://en.wikipedia.org/wiki/IEX https://en.wikipedia.org/wiki/IEX
tcbawo 2y ago
> people who have provably low income You want to give all your financial info to your brokerage? What increasing latency will do is widen the markets. We’ll go back to the days of multiple cents or dollars between the bid and offer prices of stocks. It will definitely increase the time horizon to make an investment profitable. But maybe that’s a societal good for some people… In the modern era, adding a speed bump might just mean that all the trading moves overseas, to derivatives, or mutual funds. Money finds a way of flowing downhill
- otterley 2y ago
  > You want to give all your financial info to your brokerage? You have little choice anyway. Once you give them your identification, which is required by KYC laws, it's a small matter of getting your financial information from the data brokers who possess it.
phyalow 2y ago
[flagged]
- beaeglebeachedd 2y ago
  Yeah it'll move offshore, but if you cut off dollar access and list on FATF black list any nation that does it, it will mostly stop, at least while USA has it's current influence. Not saying you should.
- Terr_ 2y ago
  Nah, it will just create separate markets for participants that think the HFT arbitrage malarky is/isn't to their advantage. So yeah, trading on other markets will still be a thing that happens, but that doesn't mean it will necessarily siphon off all the activity.
- lowbloodsugar 2y ago
  You think my pension plan is going to leave US exchanges to trade off shore? You think the US govt will even allow US Corps to not trade in the USA? Feel free to take your HFT off-shore: there'll be no volume.
  - phyalow 2y ago
    Yeah, they would go offshore. But it would never get to that point, because the entire proposition is so asinine. Your pension fund already trades on global exchanges. Your pension fund has a best execution duty. In fact splitting US equity trading into slow/fast is actually an HFT's yet dream. Price discovery would happen offshore and then they would be filling (or ignoring) slow traders onshore. What a trip.
solveit 2y ago
I think this runs counter to the purpose of having a stock market. The stock market is not supposed to let everyone can gamble on a level playing field, it is supposed to make it as easy as possible for companies to raise money.

by dheera 2y ago

kevin_thibedeau 2y ago

IEX runs with similar goals in mind to ban HFTs with special access and level the playing field. https://en.wikipedia.org/wiki/IEX https://en.wikipedia.org/wiki/IEX

tcbawo 2y ago

> people who have provably low income You want to give all your financial info to your brokerage? What increasing latency will do is widen the markets. We’ll go back to the days of multiple cents or dollars between the bid and offer prices of stocks. It will definitely increase the time horizon to make an investment profitable. But maybe that’s a societal good for some people… In the modern era, adding a speed bump might just mean that all the trading moves overseas, to derivatives, or mutual funds. Money finds a way of flowing downhill

otterley 2y ago
> You want to give all your financial info to your brokerage? You have little choice anyway. Once you give them your identification, which is required by KYC laws, it's a small matter of getting your financial information from the data brokers who possess it.

phyalow 2y ago

[flagged]

beaeglebeachedd 2y ago
Yeah it'll move offshore, but if you cut off dollar access and list on FATF black list any nation that does it, it will mostly stop, at least while USA has it's current influence. Not saying you should.
Terr_ 2y ago
Nah, it will just create separate markets for participants that think the HFT arbitrage malarky is/isn't to their advantage. So yeah, trading on other markets will still be a thing that happens, but that doesn't mean it will necessarily siphon off all the activity.
lowbloodsugar 2y ago
You think my pension plan is going to leave US exchanges to trade off shore? You think the US govt will even allow US Corps to not trade in the USA? Feel free to take your HFT off-shore: there'll be no volume.
- phyalow 2y ago
  Yeah, they would go offshore. But it would never get to that point, because the entire proposition is so asinine. Your pension fund already trades on global exchanges. Your pension fund has a best execution duty. In fact splitting US equity trading into slow/fast is actually an HFT's yet dream. Price discovery would happen offshore and then they would be filling (or ignoring) slow traders onshore. What a trip.

solveit 2y ago

I think this runs counter to the purpose of having a stock market. The stock market is not supposed to let everyone can gamble on a level playing field, it is supposed to make it as easy as possible for companies to raise money.