For example one may even the playing field by simply adding a clock to the market so that all trades must happen on clock "ticks". This would prevent the advantage of HFT.
No it wouldn't. At 12:00:00:001, all the HFT's will race to place an order and be the first in the queue. At 12:00:01:000, the fastest HFTs will be the ones to trade.
Additionally, if news occurs at 12:00:00:998, the HFTs will all race to cancel their orders as fast as possible.
No it wouldn't. At 12:00:00:001, all the HFT's will race to place an order and be the first in the queue. At 12:00:01:000, the fastest HFTs will be the ones to trade.
Additionally, if news occurs at 12:00:00:998, the HFTs will all race to cancel their orders as fast as possible.