THE speed at which investors can trade shares would be slowed dramatically under a plan to put the brakes on ultra-fast electronic sharemarket trading.
As governments around the world consider policies to rein in high-speed computerised trading, the group representing industry super funds has put forward a radical proposal that it says would make the sharemarket fairer and less volatile.
Under the plan, sharemarket rules would be overhauled so that trades effectively took place every few seconds, rather than every millisecond or microsecond, as occurs today.
The Industry Super Network, which has proposed the change in a submission to Treasury, argues such a move would curb volatility in the sharemarket and remove the unfair advantage given to investors using high-frequency trading platforms.
ISN's director of regulatory policy, Zak May, said the proposal was to pool investors' orders into a series of ''call auctions'' that would occur frequently throughout the day.
Call auctions - which match buyers and sellers in a similar way to automated eBay auctions - are already used by the Australian Securities Exchange at the opening and closing of the market." continues ********************************
Someone must be listening. I hope i am not repeating this link as its a bit dated... Will this Call auction measure help?
