Tick size reduction could boost risk: Japannext

Market participants have mixed views over the introduction of smaller tick sizes by the Tokyo Stock Exchange (TSE) in January, with some anticipating a quick boost in execution performance and others warning of unintended risks. Compared with proprietary trading systems (PTSs) such as SBI Japannext and Chi-X Japan, the TSE’s tick sizes – the minimum movement of a stock price – are quite wide and therefore more costly. (Generally the narrower the tick size, the narrower the bid/ask…