Interesting letter in this morning's SMH, calling for a ban on high frequency sharemarket trading. It refers to an earlier letter in which Super Funds also called for a high frequency trade ban.
It says that the purpose of sharemarkets is to match providers of capital with the genuine commercial need of management to expand their businesses. Sharemarkets were not meant to become casinos where shares are traded by the milli-second and manipulated purely for greedy stockbrokers.
The letter writer goes on, and suggests a minimum time for shares to be held before they can be resold. He suggests 48 or 72 hours.
To me the idea has merit although I think the time limit could be a lot shorter. Presumably this excludes options.
The government and ASX and all regulatory bodies will only act if people complain.
The letter writer finishes with saying it would be a real test for company directors to show their concern for long-term shareholders, instead of the 'boys club' they lunch with.
AOH Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
