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.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement