,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #aieb  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ac1 #bjac ,mr4 
,schweikert introduced the following    
bill2 which was referred to the         
,committee on ,financial ,services  ,a  
,,bill  ,to amend the ,securities       
,exchange ,act of #aicd to require the  
,securities and ,exchange ,commission to
 allow publicly traded companies with a 
certain sized public float to change    
their stocks' tick sizes to increase    
liquidity by incentivizing capital      
commitment1 research coverage1 and      
brokerage support1 thereby increasing   
the stocks' liquidity and investor      
interest1 and for other purposes4  #a4  
,short title ,this ,act may be cited as 
the ,spread ,pricing ,liquidity ,act of 
#bjac4  #b4 ,tick size for certain      
issuers  7a7 ,in general ,section       
#aa;,a7c77#f7 of the ,securities        
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#ghk-#a7;c77#f77 is amended to read as  
follows3  7#f7 ,tick size for certain   

issuers  7,a7 ,selection  7i7 ,in       
general ,the board of directors of an   
issuer with a public float of           
#ejj1jjj1jjj or less 7based on a rolling
 average over the course of the         
preceding #c-month period7 and an       
average daily trading volume of less    
than #ejj1jjj shares may select to have 
the securities of the issuer quoted and 
traded using an increment of either     
#j4je or #j4aj4  7ii7 ,manner of        
selection ,a selection under this       
subparagraph shall be made by informing 
the ,commission and each exchange on    
which the securities of the issuer are  
quoted or traded4  7iii7 ,limitation on 
certain issuers ,with respect to the    
average trading price in the most recent
 #a-month period for the securities of  
an issuer--  7,i7 if such average price 
is less than #a1 the issuer may not make
 the selection under this subparagraph2 
and  7,,ii7 if such average price is #a 
or more1 but less than #b1 the issuer   
may only select to have the securities  

of the issuer quoted and traded using an
 increment of #j4je4  7iv7 ,consultation
 ,in making a selection under this      
subparagraph1 the board of directors    
shall first consult with the issuer's   
primary listing market4  7,b7 ,trading  
requirements ,if an issuer has made the 
selection under subparagraph 7,a7--  7i7
 all quotes of the securities of such   
issuer shall be done using only the     
increment selected2  7ii7 an exchange on
 which the securities of such issuer are
 traded may not charge a fee for a      
person engaging in such a trade1 unless 
such fee is uniform for all trades and  
based solely on the number of shares    
traded2 and  7iii7 such selection shall 
not prevent the securities of the issuer
 being traded at increments other than  
the increment selected4  7,c7 ,right to 
opt out of selection  7i7 ,in general   
,an issuer that has made the selection  
under subparagraph 7,a7 may choose to   
opt out of such selection at any time   
after the #f-month period beginning on  

the date such selection was made4  7ii7 
,manner of opt out ,an issuer that      
chooses to opt out of the selection     
under subparagraph 7,a7 shall do so by  
informing the ,commission and each      
exchange on which the securities of the 
issuer are quoted or traded4  7iii7     
,future selection ,subject to           
subparagraph 7,d71 an issuer that opts  
out of the selection under subparagraph 
7,a7 may make the selection under       
subparagraph 7,a7 again at any time     
after the #a-year period beginning on   
the date of the opt out4  7,d7          
,treatment of issuers surpassing cap ,if
 the public float of an issuer that has 
made the selection under subparagraph   
7,a7 rises above #ejj1jjj1jjj 7based on 
a rolling average over the course of a  
#c-month period7 or the average daily   
trading volume of the issuer raises     
above #ejj1jjj then1 after the end of   
the #c-month period beginning on the    
date of such occurrence--  7i7 the      
issuer shall no longer be considered to 

have made the selection under           
subparagraph 7,a72 and  7ii7 the issuer 
shall be ineligible to make a selection 
under subparagraph 7,a7 during the      
#b-year period beginning after the end  
of such #c-month period1 regardless of  
the issuer's public float or average    
daily trading volume4  7,e7 ,study and  
,report  7i7 ,in general ,not later than
 the end of the #i-month period         
beginning on the date of the enactment  
of this paragraph1 and annually         
thereafter1 the ,commission shall carry 
out a study of the quoting and trading  
of securities in increments of #j4je and
 #j4aj permitted by this paragraph1 and 
the extent to which such a system is    
increasing liquidity by incentivizing   
capital commitment1 research coverage1  
and brokerage support4  7ii7 ,report to 
,congress ,upon the completion of each  
study described under clause 7i71 the   
,commission shall issue a report to the 
,congress containing all of the findings
 and determinations made in carrying out

 such study1 along with any legislative 
recommendations the ,commission may     
have4  7,f7 ,definitions ,for purposes  
of this paragraph3  7i7 ,average daily  
trading volume ,with respect to a       
security1 the term average daily trading
 volume means the average1 over the     
previous #c-month period1 of--  7,i7 the
 aggregate daily volume for bids made on
 the security within the price band2 and
  7,,ii7 the aggregate daily volume for 
offers made on the security within the  
price band4  7ii7 ,price band ,with     
respect to a security1 the term price   
band means the range between the price  
that is #be cents below the trading     
price of the security and the price that
 is #be cents above the trading price of
 the security4  7iii7 ,public float ,the
 term public float means the amount of  
equity of an issuer that is held by     
persons who are not affiliated with the 
issuer1 determined by multiplying the   
number of shares of such stock by the   
price of one of such shares4  4  7b7    

,effective ,date  7#a7 ,in general      
,section #aa;,a7c77#f7 of the           
,securities ,exchange ,act of #aicd1 as 
amended by subsection 7a71 shall take   
effect--  7,a7 with respect to an issuer
 with a public float of #ajj1jjj1jjj or 
less 7based on a rolling average over   
the course of the preceding #c-month    
period7 and an average daily trading    
volume of less than #ajj1jjj1 on the    
date of the enactment of this ,act2     
7,b7 with respect to an issuer that is  
not described under subparagraph 7,a7   
and that has a public float of          
#bej1jjj1jjj or less 7based on a rolling
 average over the course of the         
preceding #c-month period7 and an       
average daily trading volume of less    
than #bej1jjj1 after the end of the     
#c-month period beginning on the date of
 the enactment of this ,act2 and  7,c7  
with respect to an issuer that is not   
described under subparagraph 7,a7 or    
7,b7 and that has a public float of     
#ejj1jjj1jjj or less 7based on a rolling

 average over the course of the         
preceding #c-month period7 and an       
average daily trading volume of less    
than #ejj1jjj1 after the end of the     
#f-month period beginning on the date of
 the enactment of this ,act4  7#b7      
,definitions ,for purposes of this      
subsection1 the terms average daily     
trading volume and public float have the
 meaning given those terms1             
respectively1 under section             
#aa;,a7c77#f77;,f7 of the ,securities   
,exchange ,act of #aicd4