Tick Size Pilot Program

On May 6, 2015 the SEC approved the Tick Size Pilot Program (the “Tick Pilot”) under Regulation NMS to test hypotheses about how to increase liquidity for small cap companies. The pilot began with a six month data collection period on April 4, 2016, followed by implementation in October 2016. This pilot consists of four groups to evaluate three variables: widening minimum quoting increments, widening minimum trading increments and encouraging displayed liquidity in what is known as the "trade-at" requirement. Generally, “trade-at” prohibits a trading venue from executing orders in the subset of securities in a test group at the same price as a protected quote, subject to certain specified exceptions. Results of the three test groups will be compared against a control group.

Tick Pilot eligible securities are Common Stock Operating Companies (i.e., excludes ADRs, Closed End Funds, Preferred Stocks, Warrants, Units, Structured Products and Exchange Traded Products).

For additional information, please see the IEX Tick Pilot FAQs or the SEC Investor Alert for the Tick Size Pilot Program.

Since the 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, each exchange has made certain data and statistics available on their website. See our Tick Size Pilot Program Data and Statistics.

Tick Pilot Securities List

Provides a list of the IEX-listed securities that are in one of the Tick Pilot test groups or the Tick Pilot control group (collectively, “Tick Pilot Securities”)

  • Control Group (“C”): business as usual ($0.01 increments)
  • First Test Group (“G1”): minimum quoting increment changes from $0.01 to $0.05; there is no change to trading requirements so executions can still occur at any increment
  • Second Test Group (“G2”): minimum quoting increment changes from $0.01 to $0.05; trading is restricted from occurring in increments less than $0.05 unless an exception applies
  • Third Test Group (“G3”): minimum quoting increment changes from $0.01 to $0.05; trading is restricted from occurring in increments less than $0.05 unless an exception applies and displayed liquidity receives primacy over dark liquidity at the same price, known as the "trade at" rule

There are currently no Tick Pilot Securities listed on IEX.