Hayden Melton
ABSTRACT
Most of the world's financial markets are electronic (i.e., are implemented as software systems) and continuous (i.e., process orders received from market participants immediately, on a FIFO basis). In this short position paper I argue that such markets cannot provide 'racetrack fairness' to their participants, yet this form of fairness seems to feature quite prominently throughout the large, multi-jurisdictional body of law governing financial markets. What seems to follow from this is that electronic batch-style markets are not only a desirable replacement for continuous ones---as a number of economists have recently argued---but a necessary replacement.
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