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SEC Seeking Comment on Sub-Penny Trading

July 19, 2001|Bloomberg News

The Securities and Exchange Commission is seeking public comment about the impact on markets from trading in increments of less than a penny amid agency concerns that the tiny price spreads could hurt investors.

The SEC is soliciting comments over the next two months on the effects of the trading on liquidity, price visibility, computer capacity, investor-protection rules and trading behavior.

Brokerages have expressed concern that sub-penny pricing can be confusing because of rapidly changing quotes, make it harder for brokers to find the market with the best prices and burden their computers.

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