Impact assessment

Computer trading: tick size regulation - costs, benefits and risks

Economic impact assessment on a prescribed minimum tick rule.

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Tick size is the minimum variation in the price of a security. This economic impact assessment looks at the desirability of a prescribed minimum tick rule. The aim of such a rule would be to prevent a race to the bottom and provide for a more stable and liquid capital market with low trading costs.

This impact assessment was commissioned as part of the Foresight project on the future of computer trading.