[skorgu]

Bear in mind the exchanges aren't stupid, Nasdaq at least has instituted a penalty system for sending a bajillion orders and not actually trading [0]. One may certainly quibble with the exact rates and penalties but this is a thing that exists.

[0] http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2012-13

[greenyoda]

It makes a lot of sense to penalize that kind of behavior. Deliberately slowing down the quote feed or cancelling all your trades seems to be intended as a denial of service attack on your competitors.

[infinii]

Take a look at the example and how small the penalty is. Not much of a deterrent for traders making multi-million $ bonuses is it?