The market value of a stock quote continues to plummet. As Nanex shows so graphically below, it's taking more quotes to get the same amount of trading done in today's stock market, meaning that everyone has to process more information than ever before, yet actual trading continues to stagnate.
Market traders are increasingly using web bots to measure information levels in the market. The rule is simple. If you put a quote on the market that is a level change greater then the market can measure, then you reveal information which is value. But the more value you release, the faster your trade converges. As the web bots become increasing certain, the trades have to be broken up to match the Shannon model of information flow, but the sample rate, or event rate becomes a million per second. The certainty of the human remains the same, but that certainty is broken into ever smaller chunks by the bots. The problem that Nanex points out is that many humans still do not have a Huffman encoder managing their trades, and they get discouraged. The solution is for traders to hire a high school kid and code up the algorithm I just linked to.
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