Sub-Penny Quoting

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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 ?
The use of subpenny prices for securities trades has proved controversial and the Securities and Exchange Commission (SEC) has proposed a ban against subpenny quoting for stocks priced above one dollar across all U.
Currently, the major markets do not allow subpenny quoting but a few electronic trading systems that match customer orders do.