WSJ: 5 cent increments for 1,000 smallcap stocks starting May 2016

MrN said:
For many of the stocks I buy, I am guessing it will be useful. I think it is about the many thinly traded on-exchange companies in the 100m to 3B range, not liquid penny stock day trader favorites that trade with penny spreads.
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Dude there's way more than just penny stocks that trade with penny spreads. I don't see how this would be useful to anyone and I'm still trying to grok their actual argument for doing it.
 
why they do it? That should be the easiest part of the whole thing to answer. Wider spreads benefits one group of people. The same group that pays huge amounts to exchanges and heavily lobbies legislators that in turn "control" regulators.

i960 said:
Dude there's way more than just penny stocks that trade with penny spreads. I don't see how this would be useful to anyone and I'm still trying to grok their actual argument for doing it.
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volpunter said:
why they do it? That should be the easiest part of the whole thing to answer. Wider spreads benefits one group of people. The same group that pays huge amounts to exchanges and heavily lobbies legislators that in turn "control" regulators.
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Yes I realize that. I meant I'm still trying to find the layperson reason that the SEC is justifying this with.
 
I think they're hoping we're all drooling, handicapped, buy-stop, sell-stop, no-jaywalking idiots with nickels pouring out of our pockets all over the ground for them to pick up and then drive a steam roller over us.

No explanation they could possibly give will make any sense to anybody but themselves. They've been steering the public away from the equity markets for a long time, and this is a particularly infuriating example.
 
We really need a new exchange to come along and take the listings away from US jurisdiction as it's clear they are just out there to rob the retail traders. This is just a start, that's my guess.
 
Should have left it alone in the 90s? Trade it as 1/16ths. And just like Big S&P500 futures traded in nickels at $25, brokerage was $12 bucks, with Emini ES, need ten of them to get same kick but each tick being a quarter is $125 for equal as before and retail paying $4 bucks roundturn, comes to $40 for brokerage for ten. Yea, any time an exchange says they going to make it better is like IRS says "we are here to help you".

Little guy has better change of finding pot of gold at end of rainbow than get fair deal at exchanges.
 
Cautious this may be good, really good.

I am a former MM put out of biz shortly after 9-11.

Guys, just use limit orders, play the edges and you'll be surprised.
 
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