What’s the minimum lag for a packet to reach around the world?
Multiply x2 and add an extra 10%.
Make that the minimum order placement tick duration.
There would be 1 single global price and no arbitrage between markets possible.
Multiply x2 and add an extra 10%.
Make that the minimum order placement tick duration.
There would be 1 single global price and no arbitrage between markets possible.
What you're proposing is turning continuous trading into a fast series of auctions, like what happens for every ticker on every exchange at the opening. This would have the disadvantage of no clear bid/ask - how can you be sure that the parties do not withdraw their offers before the next tick? And surely you must allow for offer withdrawals.
All orders are placed at the previously known tick price and later orders will occur at the price declared on the next tick.
Of course no trader should access the “ghost price” before it is announced on the tick.
Propagation delays remain limited to local data centers and in any case it’s about globally known prices.
Where’s the arbitrage here?