| > What would happen if the stock market were quantized to a blind one trade per-minute granularity? Like one share of stock trades each minute in each name? Or one trade randomly executes? If the former, you stop trading the stock and start trading something pointing at it. If the latter, the rich get to trade. > less focus on beating causality and light lag You’d have to ban cancelling orders, otherwise you bid and offer and then cancel at the last minute. Either way, you’d be constantly calculating the “true” price while the market lags and settling economic transactions on that basis. (My guess is the street would settle on a convention for the interauction model price.) If you’re upset about stock markets looking like casinos, the problem isn’t the fast trading. It’s the transparency. Just don’t report trades until the end of the day. If you aesthetically don’t like HFT, that’s a tougher problem as the price of the stock points at something tied to reality, and reality runs real time. Both ideas sort of look like the private markets. |
This has the advantage of every trader getting the same price every minute. And racing against the clock has marginal utility