How often does someone decide they want to sell (buy)? Market makers are reacting to demands for immediate liquidity in a distributed marketplace comprised of multiple equities exchanges.
To add to this, this model only works if the entire market place operates this way. If any other venue is providing pricing updates a venue that is halted, or somehow contributing to a delay in pricing updates, is going to be left behind.
In the hypothetical "one quote a day" market, the quotes will be insanely wide to account for the risk that the natural price of product moves through the quote (with no way to provide pricing/quoting updates).
That said, I like the idea of a slower market, but, much like the debate over Maker/Taker, it will take an entire industry shift and can't be done on a single venue.
It won't be insanely wide, it will be on par with the intra-day variations. What they may make a seller lose are on par with what they would lose by taking a few hours to think about their decisions.
> If any other venue is providing pricing updates a venue that is halted, or somehow contributing to a delay in pricing updates, is going to be left behind.
My suspicion is that some companies would prefer to only have investors instead of speculators. I suspect that a SE with such rules would favor long term investments over short term profits.
In the hypothetical "one quote a day" market, the quotes will be insanely wide to account for the risk that the natural price of product moves through the quote (with no way to provide pricing/quoting updates).
That said, I like the idea of a slower market, but, much like the debate over Maker/Taker, it will take an entire industry shift and can't be done on a single venue.