Here’s a concise update on the latest tick size news.
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The tick size concept refers to the minimum price increment at which a security can trade. Recent regulatory discussions focus on whether widening or narrowing these increments affects liquidity and trading efficiency. For context, there have been past pilots and rule proposals in the U.S. to test wider increments for small-cap stocks and to explore related rules like trade-at, aimed at routing more trades to public venues.[2][3][4]
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In 2024, the SEC signaled ongoing interest in evaluating new tick size regimes as part of broader market-structure reforms, with public meetings and potential rulemaking discussions around min price increments for equities.[2]
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Investor education materials from prior tick size pilots explain how widening increments (e.g., from $0.01 to $0.05) could impact liquidity, volatility, and order handling for smaller companies, and they note the pilot would run for a defined period to gather data before any final changes are adopted.[3]
Key takeaways for 2026:
- Expect continued regulatory scrutiny and potential updates to tick-size rules as part of market-structure reforms, with SEC and exchanges evaluating impacts on liquidity and trading efficiency.[8][2]
- Public-facing research and disclosures from the pilot program are likely to appear periodically, summarizing observed effects on small-cap trading and overall market quality.[3]
If you’d like, I can pull the most recent press releases or SEC filings to pinpoint exact dates and proposed rule changes, and I can summarize the findings in a quick, cited briefing. If you want a chart or a side-by-side comparison of different tick-size proposals, I can create that too. Please specify which format you prefer.
Citations:
- Overview of tick size concepts and historical pilot context.[1][6]
- SEC and market-structure reform discussions around tick sizes and related rules.[7][2]
- Investor-facing explanations of the tick size pilot program and its goals.[3]
Sources
Wall Street's top regulator is due to vote next week on proposed new regulations to allow the pricing of stocks in increments of less than a penny, part of a pending structural overhaul of equities... -September 12, 2024 at 01:51 pm EDT - MarketScreener
www.marketscreener.comThe industry expects the SEC to finalize the Reg NMS shake-up as soon as late summer. While there is broad agreement about the need for change, the extent of
www.waterstechnology.comBeginning October 3, 2016, a new National Market System (NMS) Plan to implement a Tick Size Pilot Program (the “pilot”) will widen the minimum quoting and trading increment —sometimes called the “tick size” — for some small capitalization stocks. The goal of the pilot is to study the effect of tick size on liquidity and trading of small capitalization stocks. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission’s (SEC) Office of Investor Education and...
www.investor.govThe SEC's project to better understand the impact of changing the tick size for securities of small-cap companies kicks off today.
www.waterstechnology.comTrading Tick Explained: SEBI Tick Size Changes 2025
www.finosauras.comA tick is a measure of the minimum upward or downward movement in the price of a security. With decimalization, the minimum stock tick size is one cent.
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