[radikalus]

There's so many small sub-problems here that it's hopelessly naive to think there's a silver bullet. There are however lots of GOOD ideas. (See CME price band style mini auctions aka restricting dPrice/dt -- I forget what they call them)

I'll not so briefly add:

- Stochastic delays have many externalities; people consuming liquidity will simply send many orders hoping to "win the dice roll" on your stochastic time noise system

- Stochastic delays plus limiting orders per day etc doesn't "easily" work because enforcement is tough when people trade on your exchange as multiple entities, multiple trading desks/groups etc (Huge pita for everyone involved)

- Stochastic delays plus pay per order doesn't consistently work well as value of orders is highly variant and there's no single magic # to make this economically optimal

- Fixed delays are pretty similar to the geo location of the exchange just moving. It effects the external RV situations but I don't feel does much internally except poison market data with more "not-really-there" stuff. (Because MD state is increasingly out of state with in-flight orders) Recognize that stale MD compounds issues as more people send orders at opportunities not really there and this is largely what leads to MD delay spikes etc and is generally destabilizing.

- Selling order flow is 100% bullshit. I wish all that crap was illegal -- this is where retail gets their faces most ripped off and how lots of chumps get to make hundreds of millions for no reason. Building models that tell you which customers in your captive flow to piggyback in which products is super disgusting to me. Anyone who trades with their flows exposed is surrendering alpha to parasites.