November 29, 2011
I think this is a horrible idea. It gives select individuals an advantage that others will not have and only perpetuates a system that results in worse fills overall for the public, not better. The problem is sub-pennying. There are few traders and proprietary trading firms willing to trade stocks, and therefore make markets, because the High Frequency Trading(HFT) firms use computers to step in front of their bid or offer by $0.00001. The amount of money saved by the public on such fills is miniscule compared to what happens when their stops are run by several cents because the HFT firms step aside completely when volatility increases, just when liquidity is needed the most. End this madness and end sub-pennying.