February 08, 2013

[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.

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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 ...