Please be informed
that U.S. Securities and Exchange Commission (“SEC”) has launched pilot program
to widen
the bid-ask spread in certain smaller capitalized issuers with effect from 3rd
Oct 2016. The purpose of the program is for the SEC to collect data and see if
widened spreads help capital formation for smaller companies.
The program includes
1200 securities in three test groups selected by FINRA, subject to changes. The
program is being phased in starting 3 Oct 2016 and by 31 Oct 2016, all 1200 securities
will be phased in.
In accordance to the
schedule of the affected securities, you will have to enter your order in 5
cent increments (eg: 0.05, 0.10, 0.15, etc) for the affected securities. Your
order will be rejected by the respective Exchange if you have entered an
incorrect price increment.
Please be reminded to
check the latest order status in i*Trade@CIMB order
book.
For more information
on tick size pilot program implementation, please click [Here].
