"The one-penny minimum has become outdated," SEC Chair Gary Gensler said during the agency's meeting Wednesday. "The updates we're considering today will help drive greater efficiency, competition and fairness in our equity markets."
The changes could apply to about 2,400 securities, including stocks and exchange-traded funds, SEC officials said Tuesday during a press briefing. The number of so-called tick-constrained stocks affected by the new increments might change over time.
For years, market participants have complained that requiring exchanges to quote stocks at increments of at least 1 cent restricts liquidity and competition for order flow.
Market participants have warned they may sue the agency over the lower access fee caps. Such fees help fund the rebates some exchanges offer brokers to entice order flow to their platforms.
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