Official announcements from the SEC or major stock exchanges

SEC Unanimously Votes to Allow Half-Penny Stock Pricing on September 18, 2024

Sep 18, 2024, 02:42 PM

The U.S. Securities and Exchange Commission (SEC) has unanimously voted on September 18, 2024, to allow stock exchanges to quote prices in increments of half a penny, rather than the current minimum size of one cent. This decision is part of a broader package of reforms aimed at promoting more competitive pricing and reducing investor costs. The new rules, which represent the most significant overhaul of U.S. equity markets in nearly 20 years, are expected to apply to thousands of stocks and exchange-traded funds (ETFs). SEC Chair Gary Gensler stated that the changes address outdated rules and are intended to enhance market transparency and efficiency. Additionally, the reforms will lower the fees exchanges can charge brokers, further reducing trading costs for investors.