Anyone can trade fractional pennies with various order types. The SEC isn't stopping you. It's your "free trades" broker that is limiting you. lol. It amazes me how hypnotized people are by their free trades. They have no idea how much it is costing them.
(13) The term "minimum price increment" means $0.01 in the case of a System Security priced at $1 or more per share, and $0.0001 in the case of a System Security priced at less than $1 per share. https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/Nasdaq Equity 1
For lit liquidity. You can still do things at NASDAQ like PEGMID orders. This is why you see fractional pennies being traded on stocks over $1.
Displayed orders. An order that is sitting on the NASDAQ order book and visible to anyone who subscribes to the NASDAQ order book.
To clarify: The 1 penny division is for Displayed Orders. It does not apply to none displayed orders such as a NASDAQ PEGMID.
Displayed order. It's on the order book and available to anyone who subscribes to that order book. But as a retail trader you would only see it if it happens to be top of the order book. Then it'll be on your Level 2 display.
I find it funny how all these peeps are so afraid of phone calls. That Maverick guy, he has seen your response. Did he call you, or is he/she another no-show?