Skip to content

Comment on New stock market for long-term investors/reducing high-frequency tradingparent

Comments

   That's slippery slope logic. If the pricing is right at
   1s, why pour money and talent into getting it right at 
   100ms?
I'm saying there are negative externalities[1], which are known to cause market inefficiency. Negative externalities typically look like "slippery slope" arguments, when in reality there is an appropriate level of penalty/tax/etc that restores efficiency.
   Meanwhile, you're effectively vouching for a comment 
   that models the markets as a closed system of people 
   dividing up a single pot of money. Isn't it plain that 
   such a model is wrongheaded?
I'll concede it's not zero-sum, but surely you also will concede diminishing returns to liquidity. I'll also concede that my original "money sink" comment was hyperbolic & inflammatory.

[1] http://economics.fundamentalfinance.com/negative-externality...

AboutSource Built by g1lg1l

Hackerly is an independent reader for Hacker News, built on the public HN API. Not affiliated with Y Combinator.