NYSE Tick Size Pilot Program
As part of an overall plan being conducted by the national securities exchanges, the New York Stock Exchange has begun a "Tick Size Pilot" program, which became effective on October 3, 2016, though which it is evaluating whether widening the tick size of small cap stocks, such as our common stock, would have an impact on trading. The NYSE program includes operating companies that have been listed for at least six months, have $3 billion or less in market capitalization, an average daily volume of one million shares or less and a volume weighted average price of at least $2 per share. The pilot program, which will run for two years, consists of one control group and three test groups, with 400 securities in each test group selected by stratified sampling.
As you may have heard, we have been randomly selected to be in the "control group." The control group is intended to represent a baseline for analysis during the pilot period. Pilot securities in the control group are quoted at their historical tick size increment of $0.01 per share. Accordingly, we do not anticipate that our common stock will be impacted by our participation in this program.
For more detailed information on the Tick Size Pilot program, please see the frequently asked questions posted on the NYSE's website, a link to which appears below.
- Tick Pilot FAQs: https://www.nyse.com/tick-pilot/faqs