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Wednesday, August 03, 2005

SEC Extends Compliance for Sub-Penny Rule

Ant & Sons: Word on Wall Street writes:
The Securities and Exchange Commission extended the compliance date for Rule 612 of Regulation NMS, also known as the Sub-Penny Rule. Rule 612 will prohibit market participants from submitting quotations or orders in NMS stocks in increments below $0.01, except that quotations or orders priced less than $1.00 may be priced in increments as small as $0.0001. Brokerage houses will likely cheer this move as it will increase the spread on the bid and ask of most stocks. However, traders will not be smiling as the competitiveness of trading orders will be more limited than before, decreasing liquidity. Orginally, this regulation adopted a compliance date of August 2, 2005, but now that date has been extended until Jan. 31, 2006.

1 Comments:

Anonymous Great Pennt Stock Picks And Tips said...

I would totally avoid sub Penny stocks. Stocks trading at 5 or 10 cents a share are really really risky.

12/07/2011 01:10:00 PM  

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