September 19, 2012

How to Fix High Frequency Trading per T Rowe Price

How to fix High Frequency Trading per T Rowe Price.
We would like to see a pilot program where all payments for order flow, maker-taker fees, and other inducements for order flow routing are eliminated.  We envision a pilot where there are wider minimum spreads and mandated time for quotes to be displayed to render them truly accessible. These programs can include a spectrum of stocks across market caps and average trading volumes, among other factors. We also suggest a pilot program of imposing cancelation fees for unacceptable trade to cancelation ratios.  A key question is should we foster consolidation in this fragmented market? At a minimum, should we raise the barrier for becoming an exchange? In our opinion, requiring a more robust testing for new software would seem to make sense.

All good suggestions. And, how about the exorbitant fees for high speed quote feeds?

Tags: fixing high frequency trading, fixes for high frequency trading, t rowe price on high frequency trading