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S. 3947: Intelligent Tick Study Act


The text of the bill below is as of Mar 29, 2022 (Introduced).


II

117th CONGRESS

2d Session

S. 3947

IN THE SENATE OF THE UNITED STATES

March 29, 2022

introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Securities Exchange Act of 1934 to permit different tick sizes for emerging growth companies, and for other purposes.

1.

Short title

This Act may be cited as the Intelligent Tick Study Act.

2.

Tick sizes

Section 11A(c)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78k–1(c)(6)) is amended to read as follows:

(6)

Tick size

If the Commission determines that the securities of emerging growth companies should be quoted and traded using a minimum increment of greater than $0.01, the Commission may, by rule, designate a minimum increment for the securities of emerging growth companies that is greater than $0.01 but not more than $0.25 for use in all quoting and trading of securities in any exchange or other venue.

.

3.

Report

(a)

Definition of security

In this section, the term security has the meaning given the term in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c).

(b)

Report

Not later than 1 year after the date of enactment of this Act, the Securities and Exchange Commission shall conduct a study and submit to Congress a report that examines—

(1)

the transition to trading and quoting securities in increments other than $0.01, which includes increments higher and lower than $0.01;

(2)

the impact that the change described in paragraph (1) has had on liquidity and market quality for small, middle, and large capitalization company securities; and

(3)

whether there is sufficient economic incentive to support trading operations in the securities described in paragraph (2) in increments other than $0.01.