What capital markets are for
The original idea was to connect people who had an idea to create wealth with people who had spare money. Wealth creation takes time, generally years. So sound investors dont buy and sell at the speed of light. Warren Buffet, who does quite well at this kind of thing, likes to be in for the long term. So what's the point of all the super-rapid turn-over? Well it allows those who do it fastest to skim a profit. The alleged benefits being lower spreads, arbitrage and liquidity. But if you look at the high percentage of profit the skimmers make you should be able to work out the price real investors and real wealth creators are paying for this "market efficiency". If it's too high, what can be done? Maybe remove that nice little tax break skimmers enjoy: they can offset losses against gains. And then tune the fiscal system to favour wealth creation rather than the casino. A lot of people have an interest in endlesly increasing the volume of trades, but it doesn't create any wealth, just consumes it.