SEC Adopts Rules To Amend Minimum Pricing Increments And Access Fee
Washington, D.C. – The Securities and Exchange Commission (SEC) has announced the adoption of new rules that will amend the minimum pricing increments and access fee for certain equity and equity options transactions.
Background
The current minimum pricing increments and access fee were established in 2005 and have not been updated since. The SEC believes that these rules are no longer appropriate due to changes in the market since 2005.
New Minimum Pricing Increments
The new rules will increase the minimum pricing increments for certain equity and equity options transactions. The new minimum pricing increments will be:
- $0.01 for equity transactions with a share price of less than $1
- $0.05 for equity transactions with a share price of $1 or more
- $0.10 for equity options transactions
New Access Fee
The new rules will also increase the access fee for certain equity and equity options transactions. The new access fee will be $0.0001 per share for equity transactions and $0.0002 per contract for equity options transactions.
Impact of the New Rules
The SEC believes that the new rules will have a number of positive impacts, including:
- Improving market efficiency by reducing the number of small, round-lot orders
- Reducing the cost of trading for investors
- Making the market more accessible to small investors
Quotes
“These new rules are a necessary step to ensure that the U.S. equity market remains the most efficient and liquid market in the world,” said SEC Chairman Gary Gensler.
“I believe that these new rules will have a number of positive impacts for investors, including reducing their trading costs and making the market more accessible,” said SEC Commissioner Hester Peirce.
Next Steps
The new rules will become effective on February 6, 2023.
