The SEC has proposed amendments to certain rules of Regulation National Market System (Regulation NMS) under the Exchange Act that would update variable minimum pricing increments for the quoting and trading of NMS stocks, reduce the access fee caps, and increase the transparency of better-priced orders placed in the NMS.
More specifically, SEC’s proposed rule amendments would:
revise the minimum pricing increments (also referred to as tick sizes) under Rule 612 of Regulation NMS, establishing a variable minimum pricing increment model that would apply to quoting and trading of NMS stocks (stocks listed on a national securities exchange) regardless of trading venue
decrease the access fee caps under Rule 610 of Regulation NMS, reduce the minimum pricing increments, and require national securities exchanges to make the amounts of all fees and rebates measurable at the time of execution
expedite the application of the round lot and odd-lot information definitions adopted in 2020 under the Market Data Infrastructure Rules (MDI Rules)
update the odd-lot information definition adopted under the MDI Rules to require the identification of the best odd-lot order (an order for the purchase or sale of an NMS stock in an amount less than a round lot, usually 100 shares)
Interested parties may submit comments until March 31, 2023, or until 60 days following the publication of the proposed rule in the Federal Register, whichever is later.