It’s still on the table:
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would such a tax not strike down the high frequency traders, stabilizing markets and encouraging broader participation in the process, and wind up being a win for society?
even just a cancellation tax should go a long way towards stopping the computers.
Sure, dry up liquidity and see what happens.
I don’t understand why this tax is always linked with high frequency trading and how it is somehow suppose to regulate it. Wouldn’t the easiest way to regulate high frequency trading just be to put a cap on how quickly you’re allowed to execute and cancel orders? Even a millisecond cap would probably destroy any profit making attempts other than pure liquidity providers. It would put an end to order stuffing and make it less and less profitable for bots to fight amongst themselves. Only problem is that it wouldn’t be profitable for the powers in charge of deciding on such regulation. So, clearly the solution is to implement an infinitely more complex set of rules to tax short term traders.
Ironic how “progressives” are about as truly progressive as your typical Luddite.
A tax on liquidity, sure, why not? Maybe we can increase the cost of capital on some other stuff too, whilst we’re in the middle of a deflationary recession.
Any other bright ideas, Merks?
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Flash crashes and the first week of August this year and 500 point reversals come with some significant hidden costs I would imagine.
Not as limpid as the permanent liquidity murder holes of the pre-computer age, that’s for sure.
If liberals could only remember, to TAX is to get less of something.
You really want less liquidity?
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