I hope the Australian lawmakers are taking notice of the probes in the US and now Europe so they understand the damage the speed of algo trading can do to individual investors. If they don't get the regulations right before allowing Chi-X as an alternative platform.
I am not against multiple trading platforms as competition to the ASX will be fine in a fair and even market. My concern is that the retail investor will be driven out of the market as the exchanges compete to get the institutional dollar. It is already happening now as brokers are being given greater benefits with the competition to the ASX looming.
Along with aka's great idea of a 2 sec limit sounds great I think a ban on algo's scouring google to find peoples preferences or breaking news stories should be banned. This can lead to market action being based on false or misleading news reports.
If you have a spare moment over the weekend (or 47min) then have a look at this on U-tube. It starts off slow but the overall content is very interesting:
