Wed, 28 Dec 2011 02:11:05 GMT - High Frequency Trading Review
By Peter Chapman
An NYSE Euronext proposal to permit its members to quote in sub-pennies is proving highly controversial.
The exchange operator's "Retail Liquidity Program" would create dark pools at the New York Stock Exchange and NYSE Amex, where members could vie for retail order flow with quotes only a tenth of a cent better than the market's best displayed prices.
If approved, the scheme could upend one of the four planks of Regulation NMS-the prohibition against sub-penny pricing-and possibly change trading behavior dramatically.
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