18 MONTHS IS TOO LONG TO WAIT FOR TICK SIZE PILOT RESULTS
Slated to officially begin on Oct. 3, 2016, the two-year Tick 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,” according to the FINRAwebsite. Unfortunately, market participants will have to wait a year and half for any results.
“Market quality statistics, market and marketable limit order data, and market maker profitability will be collected and provided to the SEC on a monthly basis,” FINRA explains. But, “The participants to the plan are required to submit their initial tick pilot assessment 18 months after the plan begins based on data generated during the first 12 months of operation.” That’s April 2, 2018.
In today’s age of real-time reporting and analytics, it is inconceivable that our main markets regulator expects us to wait a full 18 months for even an interim understanding of the pilot’s results. Well, together with CMCRC, TabbFORUM isn’t going to wait. Leveraging the CMCRC’s ability to crunch data, Thomson Reuters’ tick data, and the crowdsourced power of the TabbFORUM community, we plan to provide data-driven insight into the results within just weeks of the pilot’s commencement through CMCRC’s Market Quality Dashboard.
This is an excerpt of an article on TABB Forum 20/9/2016.
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