Remember you have until month end to jump on these deals
Unfortunately, their rules cover the least important stuff possible…instead of going after freaks like Spongetech Delivery Systems, Inc. (SPNG) and Recycle Tech Inc (RCYT) and unethical promoting TV commentators like Charles Payne & Courtney Smith, the SEC is looking into pricing more stocks into sub-pennies.
AWESOME JOB SEC, YOU REALLY SAVED A BUNCH OF RETAIL INVESTORS WITH THIS ONE!!
See the whole story from Businessweek:
SEC May Allow Subpenny Pricing for More Stocks, Shillman Says
Feb. 23 (Bloomberg) — The U.S. Securities and Exchange Commission will probably consider allowing more stocks to trade in price increments of less than 1 cent, according to David Shillman, associate director of the agency’s Division of Trading and Markets.
NYSE Euronext and Nasdaq OMX Group Inc., which run the two biggest U.S. stock exchanges, have said they want regulators to expand eligibility for subpenny pricing to companies trading for up to $10 a share, from the current upper limit of $1.
The number of exchange-listed companies trading between $1 and $10 has surged to about 1,980 from 965 three years ago following the worst financial crisis since the Great Depression, according to data compiled by Bloomberg. Traders are shifting to private venues to execute orders in smaller increments because exchanges aren’t permitted to use subpenny pricing for those stocks, said Jeffrey Davis, deputy general counsel at Nasdaq.
“The tick size is causing a dislocation in the market,” Davis said. He and Shillman spoke at an event in New York yesterday.
Sirius XM Radio Inc. (SIRI), the New York-based satellite radio operator, traded below $1 between September 2008 and this month. After it closed above $1 on Feb. 17, trading of the stock on private platforms surged to 53 percent of volume from less than 30 percent, Davis said.
The SEC prohibited subpenny trading in 2005 for all companies except those trading under $1 to prevent traders from “‘stepping ahead’ of displayed limit orders by trivial amounts.” Stepping ahead refers to traders executing in advance of a large order to profit from the expected price movement.
‘Meaningless’
The SEC said at the time that steps of less than 1 cent could reduce liquidity at the best price, make certain investor protection rules “meaningless” and lead to executions at inferior prices. It also said smaller increments may cause higher trading costs for institutions. The rule went into effect in 2007.
Nasdaq supports price changes of less than a penny for stocks up to $5 or $10, Davis said.
NYSE Arca supports subpenny ticks for stocks between $1 and $10, Paul Adcock, executive vice president in charge of trading at NYSE Arca, said last month at a conference in Chicago.
Posted in SEC