the morals of a nerdy kid are ruining the stock market

I've heard that the majority of trades on the stock market are
done by machines. Machines, using algorithms, sell stocks to
themselves, or other machines, to get .00005 of a penny
each of the thousands of times they sell them. They ride
their own rollercoaster on the stock price. Instant commissions
for the human "operator".
They can also manipulate stocks by flooding the market
with buy offers that are low, thus pushing the price down.
Well, I've been thinking that taxing this would stop it immediately,
or at least give the public purse a bucket of cash for us to cry into.

[I got this algo that will get me a date]

Well, the Norse and the Swedes have figured out a
system to stop these little spoiled boys from
screwing with their stock markets.

[I'll also dig up the case of the Norwegian guys who screwed JPM so
bad that JPM sued, and lost. I'll call it: Eeeeh. Only we's is allowed
to scam in dis way.]

IshitUnot: DENNINGER
How To Neuter The Machines
From the forum:
In Sweden, we've had an Order-to-Executed Order limit in place
since last year. Basically for every 250 orders, at least 1 must be
executed on, otherwise

a fee of 0,09 SEK (around 0,015 USD)
 is applied per order above the 1 to 250 ratio.

Norway has now (Thursday morning) placed a 1 to 70 limit
 in place, with

a fee of 0,05 NOK per order
above the limit of 1 to 70.

If our regulators want individual investors to come back
into the market they need to

implement this but with a 1 in 10 limit.

That is, for every 10 orders you place at least one must execute
or you pay a fee for each additional order. Set the fee at 5 cents
 per order over 10 that does not execute. 1 in 10 is more than
 lax enough for any human trader, but makes unprofitable the practice
of "spamming" an exchange with orders, the overload games that
Nanex has repeatedly documented and other forms of behavior that have
nothing to do with the price of an underlying
security but instead are intended to and do manipulate the market.
This one simple rule change would put a stop to 99% of the games and yet
would do no damage to actual trading of actual securities, whether
by machine or person, for actual accounts where the intent is to express
an opinion of price (instead of simply trying to steal a few pennies from
someone else.) Incidentally I have previously argued for imposing a "must
remain valid" time for all orders as well sufficient to allow human reaction
time -- say, 2 seconds.
Making both rule changes would be even better, although either would
make a significant difference.

The market is supposed to be a price-discovery mechanism,
not a pick-pocket's playground.