Lessons We Can Learn from the Failure of the Tick Size Pilot Program

Discussion in 'Wall St. News' started by ajacobson, Oct 12, 2018.

  1. Tick Pilot Conclusions from GA
     
    zdreg and d08 like this.
  2. Craig66

    Craig66

    Good riddance. What a PITA it was.
     
    d08 likes this.
  3. I was hopeful it would bring some opportunity when it started. It didn't. The pilot stocks quickly became off-limits for my discretionary style. And all my computer code had to updated to trade at nickels so my algos would stop getting rejected orders. Just reverted everything back to pennies a couple weeks ago. A welcome relief.

    We shall see what the next pilot designed to keep HFT's out of stocks brings...
     
  4. zdreg

    zdreg

    that was not the purpose of this program. it was a power grab by market makers, the purpose was to increase volume in low volume stocks and to give back power to wall street insiders, the market makers. ever since spreads have gone from fractions to pennies, market makers and prop traders from the old days have grumbled.

    the same goes for the elimination of the uptick rule. market makers made hundreds of millions over the years by being exempt from short sale uptick rules. I am not sure if they are exempt from locate rules which apply to the public.
     
    Last edited: Oct 12, 2018
  5. d08

    d08

    Why did you have to use .05 increments for everything? Just query tick increment size and apply it. Easy reversion too, no changes necessary.
     
    remoteControl likes this.
  6. I wasn’t referring to the last pilot program, but thanks for your input. There is a new one in the works...
     
  7. Certainly that is one effective way. I just hacked it quickly out of frustration. My algos are not so sensitive that being at a nickel or penny is a huge difference, but I’m happy to have it all back to normal and uniform.
     
  8. More commentary.