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Yeah, that and SEC Rule 612 (no subpenny prices, as the article mentions) both make bucketing sensible. Have a (1s,$0.01) granularity and HFT pretty much goes away, the National Best Bid/Offer makes sense again, and flash crashes only happen once a decade. If regulators actually cared about about market stability, they'd be pushing for something like that...

The London Metals Exchange - being an outlier as always - has gone for a different approach: they throttle traffic to 40 actions/client/second and smooth it out over as many seconds as necessary - so a 10,000 quote burst will be smeared over 4 minutes... good luck trying to manipulate the market with that, HFT boys.



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