Is Sub-Penny Pricing Just Common Cents?

The Securities and Exchange Commission first raised the issue in its recent concept release on US equity market structure, questioning whether the same sized increment for all stocks incentivizes trading in smaller stocks to move off-exchange. "In low-priced stocks, the minimum one cent per share pricing increment... is much larger on a percentage basis than it is in higher-priced stocks... Does the larger percentage spread in low-price stocks lead to greater internalization by OTC market makers

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