No. of Recommendations: 2
For many reasons, we need to reign in the high-frequency traders soon... or all Hell will break loose.

But the reining-in must be well focused.

I'd (as a guess/approximation) restrict it to large orders (large as compared to the typical retail investor) that are canceled within the same trading day (hour?), and waiving the first dozen or so such instances per customer account per day. Also it would be on orders that actually go to the exchanges - brokers in their own computers can deal with their own customers. And then be a fee per share, or percentage of the hypothetical trade amount, or something like that.

And I think the place to do this is within exchange rules, not by law. Changes in law may be necessary to *allow* such fees, but the exchanges will have to be the ones doing the detective work anyway so let them collect the fees.
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