Spread Pricing Liquidity Act of 2013
Bill journey · stage 2 of 5
Under committee review
What it doesSummary introduced in house (May 13, 2013)
Spread Pricing Liquidity Act of 2013 - Amends the Securities Exchange Act of 1934 concerning the national market system for securities to authorize the board of directors of an issuer with a public float of $500 million or less to select to have the issuer's securities quoted and traded using an increment (tick) of either $0.05 or $0.10.
Prohibits selection of the $0.05 tick unless the average trading price in the most recent 1-month period for the securities of an issuer is between $1 and $2. Limits the tick selection to $0.05 for the issuer of any such security.
Prescribes trading requirements. Permits a issuer that has made the selection under this Act to choose to opt out at any time after the six-month period beginning on the date the selection was made.
States that, if the public float of an issuer that has made such a tick selection rises above $500 million (based on a rolling average over the course of a 3-month period), or its average daily trading volume rises above $500 million, then after the end of the 3-month period beginning on the date of such occurrence the issuer: (1) shall no longer be considered to have made the tick selection; and (2) shall be ineligible to make such a tick selection for 2 years after such 3-month period.
Directs the Securities and Exchange Commission (SEC) to study the quoting and trading of securities in increments of $0.05 and $0.10, and the extent to which such system increases liquidity by incentivizing capital commitment, research coverage, and brokerage support.
What just happenedMay 13, 2013
Referred to the House Committee on Financial Services.
Who’s behind it
- Introduced in HouseMay 13, 2013
- May 13, 2013IntroReferralH11100
Referred to the House Committee on Financial Services.
- May 13, 2013IntroReferralIntro-H
Introduced in House
- May 13, 2013IntroReferral1000
Introduced in House