SEC Approves Half Cent Spread

J

jeb9999

The SEC on Wednesday unanimously voted to allow stock exchanges to price many shares in increments of half a cent, rather than the current minimum size of 1 cent, aiming to promote more competitive pricing and reduce investor costs on U.S. equities markets.

The SEC's decision not to include pricing increments smaller than half a cent represents a win for PFOF, which had favored the half cent increment and objected to sizes included in the proposal that were as small as a fifth or a tenth of a cent.

Starts November 2025. Should have gone down to a tenth of a cent.

The SEC needs to stop allowing the .0001 and .0099 price improvement nonsense.
 
The SEC's decision not to include pricing increments smaller than half a cent represents a win for PFOF said:
Have you consider the effects of the win for the XYTFF-BS ?
More...
 
It would have been much better to level the playing field by allowing all market participants to use the same tick size. That would have reduced investor cost. This will not.
 
Does this mean NYSE, NASDAQ, etc. will have to quote half-cent on stuff like

XLK
SPY
QQQ
UBT
TMF
TLT

and FAANG stocks? (mag7)

I would love to see tighter markets on sector ETFs and long term bonds.
 
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Now there are penny stocks.

Soon there will be nano stocks.

Soon the tick size will be so small that you won't be able to see
it unless you have a scanning electron microscope.

small tick size ---> more characters.

NQ futures has 7 characters.
JPY futures has 8 characters!!!

old people wouldn't be able to see those characters.




What a world.
 
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