Impact assessment

Computer trading: tick size regulation - costs, benefits and risks

Economic impact assessment on a prescribed minimum tick rule.

• From: Government Office for Science
• Published: 31 August 2012

Documents

Tick size regulation: costs, benefits and risks (EIA7)

Ref: BIS/12/1068

PDF, 439 KB, 24 pages

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Details

Tick size is the minimum variation in the price of a security. This economic impact assessment looks at the desirability of a prescribed minimum tick rule. The aim of such a rule would be to prevent a race to the bottom and provide for a more stable and liquid capital market with low trading costs.

This impact assessment was commissioned as part of the Foresight project on the future of computer trading.

Published 31 August 2012