You mean like settling trades every 0.25 seconds or something like that? Wouldn't there be a queue of trades piling up every 0.25 seconds, incentivizing maximum speed anyway?
Usually the proposal is to randomize the processing of the queue. So, as long as your trades get in during the window, there's no advantage to getting in any earlier. In theory the window is so small as to not have any impact on liquidity but wide enough to basically shut down all HFT.
How would that work? Would you randomly select a single order posted, go by market participant (like randomly select some entities that posted a trade in this window), and would you allow prices to move during this window?
