Reuters published an article on Friday stating that the SEC is thinking about raising trading increments for small-microcaps in hopes of increasing liquidity. They are talking about increasing the minimum spread from 1c to 5-10c. The logic is wider bid-ask spreads = more market makers will make markets = more liquidity = more trading = more revenues to financial institutions = more jobs.  I think this = INSANE.   Lets hope that if it is implemented it would be limited to $5.00+ PPS stocks. Increasing the spread of lets say a $1.00 stock from 1.00 (bid) x 1.01 (Ask) to 1.00 x 1.10 makes me want to throw up. And when has the government started caring about increasing financial institutions revenues?  Anyway, enough of my rambling, here is the article: Read More …