Institutional Investor (October 2)
2016/ 10/ 03 by jd in Global News
The Securities Exchange Commission is conducting a pilot program to determine whether a wider tick range will help drive liquidity and research, while reducing volatility. “Proponents believe a wider spread–$0.05, instead of the current $0.01 on exchanges—will lead to more displayed liquidity and thus an easier trading regime.” Over the next two years, 400 stocks will trade at the widened tick, while 1,200 stocks will serve as a control and two other groups of 400 stocks will test the effects of other variations.
Tags: $0.01, $0.05, Exchanges, Liquidity, Pilot, Research, SEC, Tick, Volatility
