IN THE SENATE OF THE UNITED STATES
March 29, 2022
Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To amend the Securities Exchange Act of 1934 to permit different tick sizes for emerging growth companies, and for other purposes.
This Act may be cited as the
Intelligent Tick Study Act.
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:
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.
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).
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—
the transition to trading and quoting securities in increments other than $0.01, which includes increments higher and lower than $0.01;
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
whether there is sufficient economic incentive to support trading operations in the securities described in paragraph (2) in increments other than $0.01.