Fidelity Joins D.E. Shaw Opposing Wider Ticks as Small-Cap Fix

Lawmakers who say moribund trading in smaller companies limits access to capital have proposed rolling back penny pricing in some U.S. equities. Executives and some of the biggest money managers say it’s not the answer.

Legislation in Congress would require securities regulators to test widening the minimum price increment at which shares of smaller stocks change hands from 1 cent. The aim is to boost earnings opportunities for market makers that facilitate trading, spurring them to buy and sell more shares and create conditions that would persuade more startups to go public.