We continue to think that SEC’s sub-penny tick size proposal is a bad idea because it will likely result in visible quote fragmentation and volatility, sub-penny quote-jumping, flickering quotes and increased message traffic. While some stocks may warrant consideration of a smaller tick size, we think any suggestion of reducing the tick size to $0.001 or $0.002 is a bad idea.  Why did the SEC propose $0.001 and $0.002 tick sizes?  According to the SEC’s proposal, here are a couple of reasons why they proposed sub-penny ticks: “One reason why the Commission chose the particular tick size cutoffs in this proposal (more…)

On December 14, the SEC will vote to consider the much-anticipated new market structure rules/amendments.  Here’s what we know and what we don’t know: What We Know According to the SEC’s Open Meeting Agenda , the proposal will include four items: Disclosure of Order Execution Information – expand the scope of entities subject to Rule 605, modify the information required to be reported under the rule, and change how orders are categorized for purposes of the rule.Regulation NMS updates – variable minimum pricing increments for the quoting and trading of NMS stocks, reduce access fee caps, and enhance the transparency (more…)

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Mar, 2022