Subject: File No. 4-657
From: Ernest F Callipari
Affiliation: Equity Trader

May 29, 2013

After watching the SEC roundtable on decimalization and reading subitted comments,I believe there is a consensus for a pilot program to evalute tick sizes in small and mid cap companies.
There have been many useful suggestions regarding the methodology the SEC should use to set tick sizes and collect data during the pilot program to assess the effects of larger ticks sizes. One can watch the roundtable and read the commments the SEC has provided on this site. My comment is this: Simply, we will not know until we try.
I for one believe that with a greater tick size we will see an increase in market making in any stock trading in larger than penny increments. Wider spreads makes market making profitable. Any entity willing to risk capital making markets should be rewarded with a reasonable return for risk. In turn you will see more depth and liquidity in these stocks which will in turn attract more investors and traders into these stocks which will again increase depth and liquidity. In the long run, larger tick sizes will strengthen stocks and their underlying companies.

Thank You