Amex Gets OK to Narrow Stock Increment

The Securities and Exchange Commission approved an American Stock Exchange request to narrow stock quote increments to one-sixteenth of a dollar from one-eighth. The plan seeks to give investors the opportunity to trade at better prices by reducing the difference between the buying and selling prices on any transaction. “We’re pleased to be leading the way to smaller trading increments, which mean greater opportunity for investors and listed companies,” Amex spokeswoman Arda Nazerian said. The Pacific Exchange, a regional stock market based in San Francisco, made a similar proposal to the SEC on Monday, SEC spokesman Chris Ullman said, and the Nasdaq Stock Market submitted its plan in March. The Amex, the nation’s third-largest stock market, became the first U.S. market to gain SEC approval to reduce the increments to one-sixteenth of a dollar, or 6.25 cents, from one-eighth, or 12.5 cents. It could start trading in sixteenths by the end of the week, an Amex official said.