There are several markets that do similar things already, for example EBS (Electronic Brokering Services) which is the largest foreign exchange market. EBS only disseminates prices in 100ms intervals (if you are paying a hefty fee for so called EBS Live, otherwise it's 250ms). They also hold on to orders for a MQL (Minimum Quote Lifespan) which is 250ms before you can delete them.
Other markets such as BrokerTec have mechanisms such as a workup period where liquidity providers have the option to pull out order when someone is trying to cross them.
I've seen all kinds of exchanges through my years of work in high-frequency trading and in my experience such 'quirks' normally doesn't protect a market from automated trading if that was the intention. At most they make it trickier and costlier to trade them which tend to favor larger established shops resulting in fewer market participants which in general is a bad thing.
Most studies done lately seem to concur that HFT has a net positive impact. Recommend you google Deutsche Bank Research High-frequency trading for example.
Slashdot Mirror
Other markets such as BrokerTec have mechanisms such as a workup period where liquidity providers have the option to pull out order when someone is trying to cross them.
I've seen all kinds of exchanges through my years of work in high-frequency trading and in my experience such 'quirks' normally doesn't protect a market from automated trading if that was the intention. At most they make it trickier and costlier to trade them which tend to favor larger established shops resulting in fewer market participants which in general is a bad thing.
Most studies done lately seem to concur that HFT has a net positive impact. Recommend you google Deutsche Bank Research High-frequency trading for example.