Tick Size Pilot Program | FINRA.org

Tick Size Pilot Program | FINRA.org

Tick Size Pilot Program On May 6, 2015, the Securities & Exchange Commission (SEC) issued an order approving the National Market System (NMS) Plan to implement a Tick Size Pilot Program by the National Securities Exchanges and FINRA.  The Order approved the NMS Plan for a two-year period and will officially commence on October 3, 2016.  The Tick Size Pilot is a data-driven test to evaluate whether or not widening the tick size for securities of smaller capitalization companies would impact trading, liquidity, and market quality of those securities.  The pilot will consist of a control group and three test groups, with each test group having approximately 400 securities. The groups are defined as follows: The control group will be quoted and trade at their current tick size increment. The first test group will be quoted in $0.05 increments, but will continue to trade at their current price increment. The second test group will be quoted and trade in $0.05 minimum increments,

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