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Comment by Loughla | Hacker News Reader

I've read the arguments that the microsecond trading serves a purpose that benefits all of us, but I fail to see how, even with the explanations.

I'm with you. Every 30 seconds. Cap the power of connection speed in trading. Trading should be based on the value of the item being traded, not on how short the fiber run is.

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> read the arguments that the microsecond trading serves a purpose that benefits all of us, but I fail to see how, even with the explanations

What about an empirical argument? Microsecond trading reduces spreads and decreases volatility. It looks useless, so people try to regulate it away, and every time they do spreads widen and trading firms' and banks' profits fatten.

> Every 30 seconds. Cap the power of connection speed in trading

I'd go back to Wall Street if this happened: it would make market making profitable again.

CLOB's force market participants to compete on pricing (which is only indirectly related to latency, since you can quote tighter if you know your orders won't get picked off by other, faster, traders) Taiwan used to have Batching style auction and it ultimately led to worse prices: https://focus.world-exchanges.org/articles/citadel-trading-a... > Our analysis of the TWSE’s transition clearly demonstrates that continuous trading results in better liquidity provision, lower bid-ask spreads, more stable prices and enhanced price discovery, as well as higher trading volumes.

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