3 ms·
The economist's preferred trade stoppages don't eliminate the advantage of trading fast, they only reduce it somewhat. If the stoppages are a little out of phas
by ISL 13y ago
The economist's preferred trade stoppages don't eliminate the advantage of trading fast, they only reduce it somewhat. If the stoppages are a little out of phase globally, they may actually increase it.
When buying and selling stocks on timescales of weeks to years, HFT doesn't effect my strategies nor outcomes in any meaningful way (except to provide exact pricing at the moment I send in a trade).
- pbhjpbhj 13y agoWhy not have it lock-stepped - every n time units the trades on the table are performed?
- dkhenry 13y agoThis is actually how it was done. A few times a day large orders would be matched and executed. We moved away from it, and I am not sure if its still used at any of the exchanges anywhere.
- gaadd33 13y agoYou would have to have it synced across all global exchanges, if it wasn't you end up with a similar position that we are in now every n time units.
- hft_throwaway 13y agoYes and between futures, cash, and options exchanges worldwide. A market structure like this would be much more prone to gaming by sophisticated participants.
- pbhjpbhj 13y agoYou wouldn't need it synced except to the unit of the lock-step. Lock it to one trade per hour and you've got an hour's leeway. The deals are arranged and lodged with the exchange. The exchange processes all deals received by the lock time; deals remaining entirely private until that point. You could have one trade per day allowed - that should cut high-frequency trading down somewhat. Of course that's not going to happen because high-frequency and the arms race allows extraction by traders of the maximum value away from producers and towards their own financial cabal.
- Daniel_Newby 13y agoIs the order book visible between executions? If yes, then nothing changes, the HFTs just keep piling on offsetting orders as the orders change. If no, gigantic inefficiencies result as investors blindly toss orders onto the market.