Title: Intelligent Tick Study Act
Policy area: Finance and Financial Sector

Summary:
Intelligent Tick Study Act
This bill authorizes the Securities and Exchange Commission (SEC) to mandate the use of larger tick sizes in the trade of the securities of emerging growth companies. Tick size is the minimum price increment of a trading instrument. Specifically, the bill authorizes the SEC to designate a tick size larger than $0.01 but not more than $0.25 for these securities. The SEC must report on the impact of potential variations in tick size for all securities.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3947 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3947

 To amend the Securities Exchange Act of 1934 to permit different tick 
      sizes for emerging growth companies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2022

  Mr. Kennedy introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to permit different tick 
      sizes for emerging growth companies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intelligent Tick Study Act''.

SEC. 2. TICK SIZES.

    Section 11A(c)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
78k-1(c)(6)) is amended to read as follows:
    ``(6) Tick Size.--If the Commission determines that the securities 
of emerging growth companies should be quoted and traded using a 
minimum increment of greater than $0.01, the Commission may, by rule, 
designate a minimum increment for the securities of emerging growth 
companies that is greater than $0.01 but not more than $0.25 for use in 
all quoting and trading of securities in any exchange or other 
venue.''.

SEC. 3. REPORT.

    (a) Definition of Security.--In this section, the term ``security'' 
has the meaning given the term in section 3 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c).
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Securities and Exchange Commission shall conduct a study 
and submit to Congress a report that examines--
            (1) the transition to trading and quoting securities in 
        increments other than $0.01, which includes increments higher 
        and lower than $0.01;
            (2) the impact that the change described in paragraph (1) 
        has had on liquidity and market quality for small, middle, and 
        large capitalization company securities; and
            (3) whether there is sufficient economic incentive to 
        support trading operations in the securities described in 
        paragraph (2) in increments other than $0.01.
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