How does the exchange charge for access? Per trade, per bandwidth, per colo distance?
It would be simple for the exchanges to reign in trading by adjusting their pricing model. Make it more expensive to make each type of request. Adding a few cents to the request would squash HFT while not drastically effecting other trading systems/people.
It would be simple for the exchanges to reign in trading by adjusting their pricing model. Make it more expensive to make each type of request. Adding a few cents to the request would squash HFT while not drastically effecting other trading systems/people.