A Study of Small Cap Market Liquidity

Smaller cap securities generally have less liquidity provision by market makers than larger cap companies. The smallest 4,721 securities account for just 22% of all trading volume, while the largest 500 securities represent 61% of trading volume.1 While NYSE offers Dedicated Market Makers that provide liquidity in small cap companies, we are pleased that regulators and industry participants are working together to focus on creating more liquid, transparent markets for smaller cap companies.

The SEC has approved a pilot program to test hypotheses about how to increase liquidity for small cap companies. The pilot began with a six month data collection period on April 4, 2016, followed by implementation in October 2016. This two-year pilot consists of four groups to evaluate three variables: widening minimum quoting increments, widening minimum trading increments and encouraging displayed liquidity in what is known as the "trade-at" requirement. Results will be compared against a control group. NYSE believes this pilot will be a positive first step in determining how small caps can attract more liquidity in the trading of their shares.

Will My Company Be Impacted?

NYSE published a list of eligible securities for inclusion in the data collection phase of the tick pilot on March 7, 2016. Tick pilot eligible securities are Common Stock Operating Companies (i.e., excludes ADRs, Closed End Funds, Preferred Stocks, Warrants, Units, Structured Products and Exchange Traded Products).

The following link contains Tick Pilot Control and Test Group Assignments

Download the NYSE Group Tick Pilot Assignments

The Daily List of all securities included in the data collection phase, and a cumulative list of changes, are posted each night by 10pm following the close, and are available here.

If any updates or corrections to these lists are subsequently made, a record of such updates is available here. You are urged to periodically check this file prior to the start of the next trading day.

Historical daily lists for data collection eligible issues are available here.

Publicly available statistics as described in Appendix B of the Tick Size Plan will be available here.

If any updates or corrections to Appendix B data are subsequently made, a record of such updates is available here. You are urged to periodically check this file.

Notice regarding how each Participant calculated the B.II.q statistic is available here. Please note that, as of October 31, 2017, Appendix B data above has been corrected and now also reflects a calculation change for the B.II.q indicator for NYSE Arca and NYSE National.

Notice regarding NYSE National, Inc.'s (NSX's) B.1.a. statistics for the period covering April 2016 - January 2017 is available here.

Publicly available statistics as described in Item II of Appendix C of the Tick Size Plan will be consolidated and available on FINRA’s Appendix C Data page.

Equity Markets Association: SEC Tick Pilot - Data and Preliminary Findings

Read the Report

Assessment of the Plan to Implement a Tick Size Pilot Program

Section VIII of the Tick Size Pilot Plan requires the Plan Participants to submit to the Commission and make publicly available a joint assessment of the impact of the Pilot. The Participants submitted the joint assessment to the Commission on Tuesday, July 3, 2018.

View the Assessment

Expiration of Tick Pilot

The SEC granted an exemption to permit Tick Pilot Plan Participants to end the quoting and trading requirements of the Tick Pilot Program at the close of trading on September 28, 2018, instead of the previously scheduled October 2, 2018. On the evening of September 28, 2018, NYSE, NYSE American and Nasdaq will publish a tick pilot security list and a tick pilot change list, moving all primary-listed symbols to the Control Group on their respective markets. FINRA will continue to consolidate exchange information into a daily list available on the FINRA website.

As of October 1, 2018, all securities in Tick Pilot Test Groups will open in the Control Group. At that time, tick pilot securities will no longer be subject to the quoting and trading requirements of the Tick Size Pilot Program. However, all tick pilot securities will remain subject to the Tick Size Pilot Program's data collection requirements until April 2, 2019, and the Plan Participants will continue to publish tick pilot statistics until then. The primary markets will continue to publish Appendix A information, which tracks mergers and acquisitions and listings transfers, until April 2, 2019.

View the Statement