SEC Will Launch 'Tick Size' Pilot To Up Market Liquidity

Law360, Washington (February 21, 2014, 3:23 PM EST) -- U.S. Securities and Exchange Commission Chairwoman Mary Jo White said Friday that the agency plans to launch a test program allowing stocks to be traded in wider increments to see if such changes would improve liquidity in the market.

Under the so-called “tick size” pilot, the SEC will allow traders to bid and offer stocks of small-cap companies in wider price increments than under the current penny system, White said at Practising Law Institute's The SEC Speaks in 2014 conference.

White said the program is part...
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