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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 dm3 on Thursday September 03, 2020 @06:42AM (#24362660)
There are already contracts trading at fractional cent prices. For an example see treasury bonds listed on CME. According to CME document[1] margin and option premium calculations round the amount to nearest cent. I suppose the same happens at settlement.

[1] https://www.cmegroup.com/trading/interest-rates/files/Treasu...

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Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by cm2187 on Thursday September 03, 2020 @06:57AM (#24362752)
But then you can arbitrage it. Buy 10,000 times 1 share, sell 10,000 shares. You can't really do that in the bond market, but you can in the equity market.
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Re:Staff Report on Algorithmic Trading in U.S. Capital Marke... by dm3 on Thursday September 03, 2020 @08:21AM (#24363267)
I think practically this would have to be solved by the equity brokers. All the intermediary accounting done in fractions and only rounded once cash leaves the broker.
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