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

Sep 18, 2024, 02:35 PM

The U.S. Securities and Exchange Commission (SEC) has unanimously voted to adopt new rules allowing stock markets to price shares in increments of half a penny, rather than the current minimum size of one cent. This move is part of a larger package of proposed reforms aimed at promoting more competitive pricing, boosting competition, and reducing investor costs. The changes, which could constitute the biggest overhaul of U.S. equity markets in nearly 20 years, are expected to apply to thousands of stocks and ETFs traded on exchanges. SEC Chair Gary Gensler stated that the new rules address outdated regulations and are intended to enhance transparency and efficiency in the market. Additionally, the SEC's plan includes lowering the fees exchanges can charge brokers, further aiming to cut trading costs for investors. This initiative is part of Gary Gensler's post-GameStop market structure overhaul.