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The SEC Decimalization Roundtable: The Industry Responds on Twitter

Industry leaders added their own two cents to the mix as they took to the Twitterverse to discuss penny pricing and other issues in response to the roundtable.

[More Coverage: Tick-Size Issue Sparks Debate]

A group of panelists on the Securities and Exchange Commission's roundtable discussion this week examined how tick sizes would affect small and mid-sized companies, sparking good commentary from industry leaders, who contributed to the discussion via Twitter. Below are some of the best, most thought-provoking responses:

Justin Schack ‏@JustinRBLT: Concannon makes great point - reducing tick for active stocks could add to message traffic issues #decimalizationroundtable

Justin Schack ‏@JustinRBLT: That's why we need a holistic review and well-thought out reforms, not a series of smaller steps that create other problems

Justin Schack ‏@JustinRBLT: Any pilot on ticks will influence other aspects of market structure - message traffic, internalization, etc. ..

Justin Schack ‏@JustinRBLT: Virtu's Concannon: decimalization delivered more profits 2 investors than any other modern mkt structure change - an "unbelievable success."

Chris Nagy ‏@ChristopherNagy: Yes, subpenny dark pool stock prices, we certainly need more of that.....NOT!

Joe Saluzzi ‏@JoeSaluzzi: Not one CFO or IR representative from a public company on the #decimalizationroundtable. It's only their stocks they are talking about.

Jacob Bunge ‏@jacobbunge: Exchanges' thirst for sub-penny share quotes goes back years -- read a story from 2010 here: http://on.wsj.com/o7apQr #decimalizationroundtable

Dennis Dick ‏@TripleDTrader: Other factors contributing to lack of liquidity in small-mid caps: Internalization. #DecimalizationRoundtable $$

Sal Arnuk ‏@ThemisSal: Stock Exchanges would love to give up wider ticks for smallcaps in exchange for locked markets in largecaps. #DecimalizationRoundtable $$

Cromwell Coulson ‏@cromwellc: #decimalizationroundtable Healy is wrong about having closed group for tick study. Include stocks in all markets to get as many data points

Scott Patterson ‏@pattersonscott: Kevin Cronin of Invesco says decimalization is red herring, real issues are internalization, maker taker and order types.

Chris Nagy ‏@ChristopherNagy: Weild 1:35m: Enormous amount of smallcap distribution not being accessed due to lack of incentives-spot on. #DecimalizationRoundtable

Chris Nagy ‏@ChristopherNagy: My comments submitted for the SEC roundtable: http://www.sec.gov/comments/4-657/4657-16.pdf …

howardlindzon ‏@howardlindzon: indeed. rading @TripleDTrader: Excellent comment letter from @ChristopherNagy on decimalization roundtable. http://stks.co/aK86 $SPY

Joe Gawronski ‏@JoeRBLT: Lona Nallengara, Acting Dir of SEC Div of Corp Fin, says shouldn't assume tick pilot a done deal-lots to consider #DecimalizationRoundtable

Wall Street Letter ‏@WallStLetter: Miss the SEC's decimalization roundtable? Get a recap of some of the discussion here ->> http://bit.ly/WN3fK1 (and updates to follow)

Joe Saluzzi ‏@JoeSaluzzi: Must read: Cowen & Co CEO statement for today's SEC decimalization panel: http://1.usa.gov/VPMpZH $$

Cara Latham contributed to this report. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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AnthODonnell
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AnthODonnell,
User Rank: Apprentice
2/13/2013 | 7:31:55 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
-How do you calculate "just enough" investment in infrastructure? There's always an initial capital cost for any efficiency gain.
ischmerken
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ischmerken,
User Rank: Apprentice
2/12/2013 | 2:31:11 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
Dark pools already execute trades in sub penny ticks. This can enable someone to jump in front of a retail trader who posts a limit order in the public market. Should there be uniform pricing rules across dark pools, internalization and lit markets?
Ivy Schmerken
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Ivy Schmerken,
User Rank: Apprentice
2/12/2013 | 2:31:11 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
Dark pools already execute trades in sub penny ticks. This can enable someone to jump in front of a retail trader who posts a limit order in the public market. Should there be uniform pricing rules across dark pools, internalization and lit markets?
pbug
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pbug,
User Rank: Apprentice
2/11/2013 | 5:31:39 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
-How does increasing the costs of data and infrastructure lower the per transaction costs?- Sure, it lowers the spreads, but having yet again to beef up feeds, internal comms lines, processor capacity, already massive database capacity greatly adds to the expense of financial firms and trading venues.- IMHO, enough is enough!
lszyrmer
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lszyrmer,
User Rank: Apprentice
2/11/2013 | 12:19:28 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
much lower transaction costs, which benefits the public and their represetantives, like mutual and pension funds-which have a fiduciary duty to their clients to minimize transaction costs.
pbug
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pbug,
User Rank: Apprentice
2/9/2013 | 10:05:02 PM
re: The SEC Decimalization Roundtable: The Industry Responds on Twitter
Is there any benefit whatsoever to the economy or to the public from going subpenny?- The biggest effect is to vastly increase the quantity of data that gets pumped out, thus greatly increasing comms and processing expense just so someone can eak out a bit more profit.
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