FESE reaches compromise on Harmonised Tick Size Regimes
02 July 2009
"The agreed solution has the potential to stop the recently initiated 'race to the bottom' and support the liquidity and efficiency of European equity markets", FESE Vice-President Golfschläger said.
FESE, LIBA and the MTFs agreed on a number of potential tick size regimes. They also agreed that FESE would consult with the wider user base of the exchanges with differing needs and business models to understand which regime was the most appropriate. Therefore, FESE launched a Pan-European initiative in May to collect the views of market participants regarding the possibility to reduce the number of tick size regimes across EU equity markets.
Based on the results of this consultation, FESE has met with LIBA and the MTFs on 30 June to present the results and agree on an implementation timeline. FESE committed to:
- Harmonising the tick size regimes for the most liquid stocks;
- Reducing the number of regimes in place to the maximum extent possible ;
- Simplifying the bands; and
- Implementing the changes, together with the users within a range of 2 weeks to 6 months, depending on the needs of the user banks.
© FESE
