On October 31, 2016 the Securities Exchange Commission (SEC) rolled out its implementation of the Tick Size Pilot (TSP). The pilot was designed to evaluate whether or not widening the tick size for 1,200 small cap securities would positively impact trading, liquidity and market quality of those securities.
After a year of collecting and analyzing data, it is Clearpool’s assessment that the pilot has not completely achieved its overall intended objective. That said, it has highlighted some interesting dynamics that affect market microstructure.
Clearpool noted that the pilot has been successful in transferring flow from maker/taker to inverted exchanges, and algorithms had to adjust accordingly to optimize passive trading while balancing increased costs as a result of the need to remove liquidity.
Click here for the full report.
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
Pension funds, sovereign wealth funds, endowments and other institutional asset owners are sitting on vast troves of data -- but extracting value from that data is more challenging than ever.
#AssetOwners #DataQuality
Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance
We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM
ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh
Related articles
-
Greenwich Associates says takeaway is that Congress should set the policy, and the SEC should make the rules.
-
Vendor reports median implicit costs for the control group fell for first full 11 months of pilot.
-
One technology broker provides preliminary insight into the Tick Pilot program
-
The buy-side says regulators efforts to fix market structure fall short.
We're Enhancing Your Experience with Smart Technology
We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.
