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Professor Christie Calls for a Nickel Tick

Traders Magazine, October 2003

John A. Byrne

Professor William G. Christie, the academic whose work on Nasdaq price collusion inspired lawmakers in Washington to bring in the controversial order handling rules, says it's time to fix spreads again. But this time with a nickel increment. Almost ten years after Christie and his colleague, Professor Paul Shultz, demonstrated that market makers maintained quote increments of $0.25 in 70 of the 100 most active Nasdaq stocks - by avoiding odd-eighth quotes - Christie says penny pricing has gone too far.

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