The US Securities and Exchange Commission (SEC) and the Financial Regulation Authority (FINRA) are exploring the impact that increased tick sizes have on market quality for smaller capitalisation stocks.
In a 12 month pilot programme, the SEC plans to experiment with widening minimum quoting and trading increments, known as tick sizes, for certain types of stock. These will be limited to those with a market capitalisation of $5 billion or less, a closing share price of at least $2 per share and an average daily trading volume of under one million shares. Pilot securities will be quoted in $0.05 minimum increments, compared to the current tick increment of $0.01 per share.
The Commission plans to monitor how system, which will be rolled out nationally, benefits investors and issuers. The SEC will seek comment on the proposed plan, which will be subject to Commission approval following a 21-day public comment period.
“This is an important step for a valuable initiative that could have meaningful implications for market quality,” said SEC Chair Mary Jo White. “I look forward to the public comment on the proposal and the expeditious development of a final pilot program.”
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more
"Uncertainty is the enemy of deal-making", so it's no surprise that Europe and the Asia Pacific's insurance industry saw merger and acquisition deals fall in the first half of 2017.
One in five countries is set to hit their highest government debt levels in 17 years predicts Fitch, although there has still been a dramatic improvement in sovereign credit.