Sub-Penny Rule
E448133
The Sub-Penny Rule is a U.S. securities regulation that generally prohibits stock quotes in price increments smaller than one cent for most exchange-listed equities to reduce market fragmentation and improve quote clarity.
All labels observed (2)
| Label | Occurrences |
|---|---|
| Sub-Penny Rule canonical | 1 |
| sub-penny quoting rule | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T4500192 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Sub-Penny Rule Context triple: [Regulation NMS, component, Sub-Penny Rule]
-
A.
Ponsonby Rule
The Ponsonby Rule is a former constitutional convention in the United Kingdom that required most international treaties to be laid before Parliament for a set period before ratification, enhancing parliamentary scrutiny of treaty-making.
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B.
Rule 502
Rule 502 is a provision in the Federal Rules of Evidence that governs the scope and waiver of attorney–client privilege and work-product protection in federal proceedings.
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C.
Rule 72
Rule 72 is a provision of the U.S. Federal Rules of Civil Procedure that governs how parties may object to and seek review of decisions made by magistrate judges in civil cases.
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D.
Rule 405
Rule 405 is a provision of the Federal Rules of Evidence that governs the methods by which a party may prove a person’s character when character is admissible as evidence in a case.
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E.
Regulation Q
Regulation Q was a former Federal Reserve regulation that prohibited banks from paying interest on demand deposits and capped interest rates on other deposit accounts, significantly shaping U.S. banking practices until its repeal.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Sub-Penny Rule Target entity description: The Sub-Penny Rule is a U.S. securities regulation that generally prohibits stock quotes in price increments smaller than one cent for most exchange-listed equities to reduce market fragmentation and improve quote clarity.
-
A.
Ponsonby Rule
The Ponsonby Rule is a former constitutional convention in the United Kingdom that required most international treaties to be laid before Parliament for a set period before ratification, enhancing parliamentary scrutiny of treaty-making.
-
B.
Rule 502
Rule 502 is a provision in the Federal Rules of Evidence that governs the scope and waiver of attorney–client privilege and work-product protection in federal proceedings.
-
C.
Rule 72
Rule 72 is a provision of the U.S. Federal Rules of Civil Procedure that governs how parties may object to and seek review of decisions made by magistrate judges in civil cases.
-
D.
Rule 405
Rule 405 is a provision of the Federal Rules of Evidence that governs the methods by which a party may prove a person’s character when character is admissible as evidence in a case.
-
E.
Regulation Q
Regulation Q was a former Federal Reserve regulation that prohibited banks from paying interest on demand deposits and capped interest rates on other deposit accounts, significantly shaping U.S. banking practices until its repeal.
- F. None of above. chosen
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
U.S. securities regulation
ⓘ
market structure rule ⓘ |
| affects |
alternative trading systems
ⓘ
broker-dealers ⓘ national securities exchanges ⓘ |
| allows | sub-penny quoting for securities priced below $1.00 ⓘ |
| alsoKnownAs |
sub-penny quoting rule
ⓘ
linked to:
Sub-Penny Rule
|
| appliesTo |
National Market System stocks
ⓘ
exchange-listed equities ⓘ |
| citation | 17 CFR 242.612 ⓘ |
| codifiedIn |
Rule 612 of Regulation NMS
ⓘ
linked to:
Regulation NMS
|
| criticizedFor |
creating advantages for internalizers and dark venues
ⓘ
potentially limiting price competition at very tight spreads ⓘ |
| doesNotProhibit |
internalization of orders at sub-penny prices when not displayed
ⓘ
sub-penny executions resulting from price improvement ⓘ |
| effectiveYear |
2005
ⓘ
2006 ⓘ |
| enforcedBy |
U.S. Securities and Exchange Commission
ⓘ
linked to:
Securities and Exchange Commission
self-regulatory organizations ⓘ |
| exceptionFor |
block trades meeting size thresholds
ⓘ
negotiated trades not displayed in public quotations ⓘ odd-lot orders in certain circumstances ⓘ stocks priced below $1.00 ⓘ |
| implementedBy |
U.S. Securities and Exchange Commission
ⓘ
linked to:
Securities and Exchange Commission
|
| influencedBy | concerns about market fragmentation in early 2000s U.S. equity markets ⓘ |
| intendedEffect |
limit sub-penny price stepping ahead of displayed quotes
ⓘ
reduce flickering quotes ⓘ simplify price discovery for investors ⓘ |
| jurisdiction |
United States
ⓘ
linked to:
United States of America
|
| legalBasis |
Securities Exchange Act of 1934
ⓘ
linked to:
U.S. Securities Exchange Act of 1934
|
| partOf | Regulation NMS ⓘ |
| policyGoal |
protect retail investors from sub-penny gaming
ⓘ
support efficient price formation ⓘ |
| prohibits | quoting in price increments smaller than $0.01 for most covered securities ⓘ |
| purpose |
enhance transparency of displayed quotations
ⓘ
improve quote clarity ⓘ promote fair and orderly markets ⓘ reduce market fragmentation ⓘ |
| regulates | equity securities quoting ⓘ |
| relatedTo |
Regulation NMS Order Protection Rule
ⓘ
linked to:
Regulation NMS
tick size ⓘ |
| requires | minimum quoting increment of $0.01 for most NMS stocks priced at $1.00 or more ⓘ |
| scope | NMS stocks quoted on national securities exchanges and associations ⓘ |
| status | in force ⓘ |
| subjectOf |
SEC concept releases and rulemaking discussions on equity market structure
ⓘ
ongoing policy debates about tick size reform ⓘ |
| targets | displayed quotations in NMS stocks ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: Sub-Penny Rule Description of subject: The Sub-Penny Rule is a U.S. securities regulation that generally prohibits stock quotes in price increments smaller than one cent for most exchange-listed equities to reduce market fragmentation and improve quote clarity.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
linked to: Sub-Penny Rule