3 ms·
It would be trivial (and vastly more equitable) to quantize trade times.
by arcimpulse 2y ago
It would be trivial (and vastly more equitable) to quantize trade times.
- FredPret 2y agoYou mean like settling trades every 0.25 seconds or something like that? Wouldn't there be a queue of trades piling up every 0.25 seconds, incentivizing maximum speed anyway?
- foobazgt 2y agoUsually the proposal is to randomize the processing of the queue. So, as long as your trades get in during the window, there's no advantage to getting in any earlier. In theory the window is so small as to not have any impact on liquidity but wide enough to basically shut down all HFT.
- affyboi 2y agoHow would that work? Would you randomly select a single order posted, go by market participant (like randomly select some entities that posted a trade in this window), and would you allow prices to move during this window?