SEC Requests Comment On NMS Plan To Implement Tick Size Pilot Program For Small Cap Stocks

In June, the Securities and Exchange Commission ("SEC" or "Commission") issued an order directing the national securities exchanges and the Financial Industry Regulatory Authority (collectively, the "Participants") to act jointly in developing and filing with the Commission a national market system plan to implement a tick size pilot program ("Order"). On August 25, 2014, the Participants filed a proposal to establish a national market system plan (the "Plan") describing a one-year pilot program to widen the minimum quoting and trading increments for some stocks with smaller capitalizations ("Pilot Program").¹ The Plan sets forth proposed procedures for selecting a representative group of stocks of small capitalization companies ("Pilot Securities") and subjecting groups of those Pilot Securities ("test groups") to various requirements with regards to quoting and trading increments. As set forth in more detail in the Plan, Participants would be required to adopt rules