Comment Re:Why not just a small transaction fee? (Score 1) 342
1 - 5 cents is the bread and butter of HFT. The fact that it's only < 10 cents that nobody thinks it's that big a deal.
So it sounds like the transaction fee might need to be closer to 10cents per share.
HFT exists because the current (transaction fee + transaction cost) is too low. Just like with spam, trying to
artificially increasing the transaction cost for an electronic transaction is bound to fail but unlike spam
increasing the transaction fee is easy to implement.
I don't think you want to eliminate all arbitrage as some can be good for the market. You just want to
eliminate the fractional cent arbitrage that doesn't benefit the market but taxes it (both physically and financially)
and a small fee would be a perfect solution to this.