SEC Unanimously Votes to Allow Half-Penny Stock Pricing to Boost Competition and Reduce Costs

Sep 18, 2024, 02:42 PM

The U.S. Securities and Exchange Commission (SEC) has unanimously voted to allow stock exchanges to quote prices in increments of half a penny, rather than the current minimum size of one cent. This change is part of a broader package of proposed reforms aimed at promoting more competitive pricing and reducing investor costs. The new rules are expected to apply to thousands of stocks and exchange-traded funds (ETFs), potentially making trading more efficient and lowering transaction costs for investors. SEC Chair Gary Gensler emphasized that the stock-pricing revamp addresses outdated rules and aims to foster competition in the market. The final rules also include a reduction in access fees to 10 mils.