Round Lot Reform

How eliminating artificial round lot constraints would save investors billions

A MEMX Market Structure Report

U.S. Securities and Exchange Commission (“SEC”) Chair, Gary Gensler, has indicated that the SEC is considering expediting round lot reform—which MEMX recommended in a letter to the Commissioners earlier this year.

In support of that effort, we continue to evaluate the impact of a one-size-fits-all round lot regime on the U.S. equity market. This report—a follow-up to our June 2021 white paper—examines recent stock splits effectuated by Amazon, Alphabet, and Tesla, which illustrate how changing the round lot in high-priced stocks could benefit investors by narrowing spreads and reducing related transaction costs.