Sub-Penny Quoting

Sub-Penny Quoting

The practice of offering a fraction of a cent (or the equivalent) higher than the bid price for a security. Sub-penny quoting is thought to complicate computerized execution programs. This may be detrimental to investors.
References in periodicals archive ?
Market centers, and not the SEC, are in the best position to determine for which securities the benefits of sub-penny quoting outweigh the costs.
The sub-penny quoting proposal would lock in a one-size-fits-all solution that could actually harm investors.
Investors want fairness - no "stepping ahead:" 80 percent of investors say that one penny should be the smallest increment for stock purchases, and 55 percent say that sub-penny quoting should be banned for most stocks.