Duffy Applauds Implementation of Tick-Size Pilot Program

Statement

House Financial Services Oversight & Investigations Subcommittee Chairman Sean Duffy (WI-07) applauded the implementation of the much anticipated "Tick-size pilot program" today. The program is the culmination of a bipartisan bill that Rep. Duffy introduced with Rep. John Carney (DE-AL) in 2013. The "Small Cap Liquidity Reform Act" tests the impact of allowing small, emerging growth companies to enter a pilot program that would give them the ability to quote and trade stocks in 5 and 10 cent increments instead of just pennies. The increased "tick size" maximizes their liquidity, giving them access to capital that the penny tick size does not foster. The bill passed the House of Representatives with near unanimous support. Recognizing the strong bipartisan support in Congress, the SEC took steps to implement a two-year version of the pilot program, which officially launched today.

Chairman Duffy commented: "Though it has taken a long time to get the Tick Size Pilot program up and running, this is a great opportunity for American small businesses to raise capital. Small companies that go public increase employment by 156% on average. The tick-size pilot program will help America's newest jobs creators to maximize their trading liquidity, grow their businesses and create much needed American jobs."

Rep. Duffy continued, "It has been a long road to get to this point, but seeing the program come to fruition was well worth the journey. I look forward to monitoring the progress of the program."

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