They are identical in terms of their notional value, minimum tick
size, contract critical dates, and conversion factor yield.
Thomson Reuters Matching includes platform controls that can influence trading behaviour, including Minimum Quote Life that ensures longevity of orders in the book and gives counterparties a fair chance of trading those orders, and Minimum Tick
Size that helps achieve the right balance between tight spreads and stability of prices.
Right now, stocks are quoted on exchanges in one-cent increments, after regulators reduced the minimum tick
size from an eighth of a dollar in 2001.
Some of the differences between NYSE/Amex and Nasdaq trading relate to the minimum tick
size on each market, and to chronological changes in the minimum tick
2) With imperfect liquidity, the size of the price revision following a trade is likely positively related to tick size, since any adjustment to prices must be at least as large as the minimum tick
These results survive extensive partitioning of the data and differ in spirit from those reported ar ound the transition of the minimum tick
size from eighths to sixteenths.
Stocks and other financial assets are traded at prices that lie on a fixed grid determined by the minimum tick
size permitted in the market.
We examine the impact of a reduction in minimum tick
size on market quality, internalization, and member profits using a transactional database of stocks listed on the Toronto Stock Exchange (TSE) for March and May, 1996.
In a move that will create an even tighter, more liquid and competitive marketplace, BrokerTec Futures Exchange (BTEX), the nation's only fully-electronic fixed income futures exchange, announced today that a decrease in the minimum tick
size on the five-year Treasury note contract will be implemented as of Friday, February 14, 2003.
Along with the increase in the contract multiplier, the new minimum tick
size will also double to $25.
Beginning March 3, CME Group plans to reduce the minimum tick
size for three of its most actively traded interest rate contracts, the 30-Year U.
The contract value for both products will be $200 times their respective index values and the minimum tick
size will be 0.