Sub Penny Quoting – Institutional traders comments

We decided to poll a number of institutional traders and ask them what they thought of the idea of quoting stocks in sub-pennies.  The responders were unanimous and were all strongly  against the idea.  Below are a few of their comments:

“I disagree with the idea of sub-penny pricing.”

“It’s not just the HFT’s who will be playing that game. Virtually any algorithmic trading will be affected. Imagine 9 more price points being made available and the number of cancellations/corrections that may introduce in the electronic marketplace. How much more bandwidth might be required?”

“I think this would be horrible!!  I would like to back to eighth’s!!   Of course the exchanges are wanting to please high frequency… it’s really too bad.”

“It’s absolutely not necessary, I have heard no one asking for this…”

“Subpennies, even pennies, just creates more opportunity for traders to game the system. It plays into the trading “arms race” that favors traders over investors. It’s a pathetic reflection on the state of affairs for our regulators, Congress (influenced by special interests) and the exchanges that the exchanges feel a need to accelerate this rapid race to the bottom.”

“I would not want sub penny trading.  Enough is enough.”

“Idiotic.  Quote in nickels above a buck.”

“I want to go back to 1/8ths, pls.”

“Pennies are low enough.  They need to have some logic to this, the tenth of a penny doesn’t exist.”

“I have not heard one person talk about sub penny pricing. Heck, fix the spreads on options first!”