Every market has a book, and a price. If a sell comes in at under the price, and there are unfulfilled buy orders anywhere above the price, the sell executes at that price for the order that has been above that price the longest. Conversely if a buy comes in above the price and there are unfulfilled sell orders below that price, the trade executes at that price for the sell order that has been below that price.
The price itself drifts upwards or downwards at a set rate depending on whether there are currently an excess of buy or sell orders that would execute at the current price.
the scheme you're describing is no different than the continuous case. whoever came in first gets filled first. it doesn't matter if matching happens at a set interval, getting into the book first still matters, and HFT continuous as usual
Every market has a book, and a price. If a sell comes in at under the price, and there are unfulfilled buy orders anywhere above the price, the sell executes at that price for the order that has been above that price the longest. Conversely if a buy comes in above the price and there are unfulfilled sell orders below that price, the trade executes at that price for the sell order that has been below that price.
The price itself drifts upwards or downwards at a set rate depending on whether there are currently an excess of buy or sell orders that would execute at the current price.
What downside do you see in such a scheme?