SEC Unanimously Votes to Allow Half-Penny Stock and ETF Pricing, Lower Fees

Sep 18, 2024, 02:35 PM

The U.S. Securities and Exchange Commission (SEC) has unanimously voted to adopt new rules allowing stock exchanges to price shares and ETFs in increments of half a penny, rather than the current minimum size of 1 cent. This change is part of a larger package of proposed reforms aimed at promoting more competitive pricing and reducing investor costs. The new rules, championed by SEC Chair Gary Gensler, are expected to constitute the biggest overhaul of U.S. equity markets in nearly 20 years. Additionally, the SEC's plan includes measures to lower fees that exchanges can charge brokers, further enhancing market efficiency and reducing transaction costs for investors. The adoption of lower minimum pricing increments, or 'tick sizes,' will allow investors to better determine the prices at which they would bid or offer without being impeded.