News for hackers. Stuff that matters.

A comment on Staff Report on Algorithmic Trading in U.S. Capital Markets [pdf]. Parent comment

Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by growse on Thursday September 03, 2020 @02:41PM (#24367264)
This whole argument seems to boil down to "I don't understand why anyone would want to trade more often than X, therefore nobody should". What's the difference between 5 minutes and any other arbitrary time period, other than hand-wavey notions about "perception"?

I'm still not sure what problem removing my ability to cross the spread whenever I like is meant to be solving.

[ Parent | on HN ]
Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by ric2b on Tuesday September 08, 2020 @01:22PM (#24410542)
> I'm still not sure what problem removing my ability to cross the spread whenever I like is meant to be solving.

What problem does it solve? Why should we have so many expert programmers and mathematicians spending their time competing in a 0-sum game that could simply run a bit slower and produce the same societal value?

[ Parent | on HN ]
Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by pbhjpbhj on Friday September 04, 2020 @08:53AM (#24374451)
Flip it around, what economic problem does enabling you to trade more often than once per day (say) solve?
[ Parent | on HN ]
Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by aeternum on Friday September 04, 2020 @03:42PM (#24378247)
Trading more frequently reduces uncertainty (it's harder to predict 24 hours out vs. 1 minute out)and uncertainty equates to risk which means trading only once per day could increase the cost of capital.
[ Parent | on HN ]
Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by growse on Saturday September 05, 2020 @03:29PM (#24386251)
You're basically asking "What economic benefit does a free market bring?" at this point.
[ Parent | on HN ]
Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by ric2b on Tuesday September 08, 2020 @01:26PM (#24410593)
It's easy to list the benefits of free markets, I don't think it's easy to do the same for sub-second regulated markets vs 1 second regulated markets.
[ Parent | on HN ]