And who's going to give those investors their shares and exits when they want to trade?
The question that needs to be answered is where trading stocks crosses over between moral to neutral to immoral.
If we assume:
nanoseconds = worse than Hitler
decades = saintly Warren Buffett
then there must be some timescale at which trading becomes good or evil.
The challenge is that the faster traders operate as counterparties for the slower ones (and for each other). They absorb risk, provide liquidity, and establish definitive prices.
One way to enforce a speed limit would be to have a crossing auction every second (similar to what they do prior to the open, or when a stock is halted, or for an IPO). If you wanted to be an active trader, you would participate in many such crossing auctions during the day.
The question that needs to be answered is where trading stocks crosses over between moral to neutral to immoral.
If we assume:
nanoseconds = worse than Hitler
decades = saintly Warren Buffett
then there must be some timescale at which trading becomes good or evil.
The challenge is that the faster traders operate as counterparties for the slower ones (and for each other). They absorb risk, provide liquidity, and establish definitive prices.
One way to enforce a speed limit would be to have a crossing auction every second (similar to what they do prior to the open, or when a stock is halted, or for an IPO). If you wanted to be an active trader, you would participate in many such crossing auctions during the day.