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A comment on Staff Report on Algorithmic Trading in U.S. Capital Markets [pdf]. Parent comment

Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by hervature on Wednesday September 02, 2020 @08:49PM (#24359822)
Can you give an example of a "most liquid low-priced stocks" that "sit at a one penny bid-ask spread all day"? Correct me if I'm wrong, but you mean that it's the same penny bid-ask spread right? Like, 10.49-10.50 for 6.5 hours as opposed to a tight spread that moves.

Can you source this:

> If we reduced tick sizes from $0.01 to $0.001, the cost of trading for most retail investors on most stocks would fall by 50% or more.

If that's true, it would seem to imply that trading costs are so low that it doesn't matter.

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Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by pierrealexandre on Wednesday September 02, 2020 @09:07PM (#24359930)
No, it does not sit at the same 1-tick spread all day. Typically for these tickers the 1-tick spread transitions very quickly to the 1-tick spread above or below (each individual market is going to be 2-tick wide for a very small amount of time at each tick transition, much less than 1 second).
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