Nanex Research

Nanex ~ 5-Feb-2013 ~ Minimum Quote Tick Size Matters

Lowering the minimum quote tick would quickly lead to an explosion of quote spam. It's easy to witness this fact with real market data. Simply observe what happens when a stock drops below $1.00 - because below that level, quotes are free to change by as little as $0.0001.

1. ALU on Nov 16, 2013. Note the explosion of quote spam when the price drops below $1.