hft to be regulated, page-2

'The proposed measures include requiring that all high-frequency traders be licensed; mandating clear labeling of all financial products traded by powerful algorithms without human intervention; and limiting the number of orders that can be placed without a corresponding trade. Traders violating the limits, which would be set once the law took effect, would face a fine."

I can't see the point of requiring HF traders to be licensed - except, I suppose, that they could revoke their licences if they do the wrong thing. Limiting the number of orders that can be placed without a corresponding trade ... I guess this would do SOME good. But let's face it, it still leaves a very uneven playing field, I reckon.

Slowing down trading by a half second?? ... I can't see that this would necessarily make the market a fairer place.

Personally, I think that really the only fair thing is to impose the same transaction costs for EVERY trade that the ordinary trader/investor would be charged and perhaps combine this with a limitation on the number of cancelled orders ... or maybe a tax on every order placed regardless of whether it is subsequently transacted or cancelled. Why should they enjoy special priveleges the rest of us don't?


Tez