The rule-making process is lengthy and costly and ought to bring additional benefits to the market beyond ‘housekeeping’.
The U.S. Securities and Exchange Commission (SEC) unanimously voted to adopt a half a penny minimum pricing increment for quotations and orders in many stocks (an estimated 1,788) that are priced at, or greater than $1.00 per share (rather than the current minimum size of 1 cent). The SEC made an economic decision based on the unique attributes of the U.S. market. Canada should do the same. This means moving beyond harmonization. Every effort should be made to factor the uniqueness of Canada’s market and ensure its competitive advantages. See the IIAC’s recommendations here.