Friday Squid Blogging: Dumpling Squid
The sex life of the dumpling squid.
As usual, you can also use this squid post to talk about the security stories in the news that I haven't covered.
Posted on August 10, 2012 at 4:02 PM
The other problem with a tax is that it will create a secondary market.
Instead of HFT on the actual market there will be a closed HFT market which trades within blocks of shares held by funds. At the end of the day/week/month these clearing houses will buy/sell whatever extra equity they need to balance the books - essentially the same as a clearing bank swapping checks.
The result of this will be that the market becomes a private club between superfunds with very low liquidity and small investors locked out.
Photo of Bruce Schneier by Per Ervland.
Schneier on Security is a personal website. Opinions expressed are not necessarily those of Resilient, an IBM Company.