Re:For the Love of Money
by smartbuttcute on Tuesday January 21, 2014 @05:30PM
(#7099059)
I visited DirectEdge.com
I doesn't appear that the average investor is allowed to join.
http://www.directedge.com/Portals/0/04Support/Membership/EDG...
You don't have to be a member of the exchange to trade there. You can connect through many outlets, some of whom offer a FIX (Financial Information eXchange) API. You can submit HideNotSlide orders through FIX and perhaps through your brokers' GUIs.
The point is that no special license or membership is required, although you may have to do some work to implement this type of order.
HideNotSlide does not cause an order to "jump to the top of the order cue[sic]." It preserves your order entry time at a price that is contra the NBBO if there is not an order at Direct Edge at the NBBO (if there is an order at Direct Edge at the NBBO the incoming HideNotSlide order is filled).
I doubt "HFT" would be dramatically limited by a transaction tax. I believe that it would lower trading volume by some amount and widen the bid/ask by some amount. The number of "HFT" firms and their trading habits would look mostly the same though.