What does a tick policy look like? - briefly
A tick policy defines the smallest permissible price increment for a security, setting specific step sizes for bids and offers across defined price bands. It also details exceptions, such as fractional increments for low‑priced instruments or adaptive adjustments during periods of heightened volatility.
What does a tick policy look like? - in detail
A tick policy defines the rules governing the issuance, accumulation, and redemption of tick credits within a system. It establishes eligibility criteria, determines the rate at which credits are earned, and specifies the conditions under which they may be used or forfeited.
Eligibility requirements are listed explicitly, for example:
- Active participation in designated activities
- Completion of verification steps
- Minimum account standing
Accrual mechanisms describe how credits are generated. Common methods include:
- Fixed‑rate allocation per completed task
- Proportional accrual based on performance metrics
- Bonus credits for achieving predefined milestones
Redemption rules outline permissible uses and limits:
- Maximum daily or monthly redemption amounts
- Approved categories of goods, services, or discounts
- Required documentation or codes for claim processing
Forfeiture provisions address situations where credits become invalid, such as:
- Expiration after a set period without activity
- Violation of compliance standards
- Account suspension or termination
Compliance sections mandate reporting and audit procedures. They typically require:
- Automated logging of all credit transactions
- Periodic reconciliation reports to supervisory bodies
- Access controls to prevent unauthorized modifications
Implementation guidelines recommend integrating the policy into existing workflow systems, employing real‑time validation checks, and providing user‑friendly interfaces for balance inquiries and redemption requests. Regular reviews ensure that the policy remains aligned with operational objectives and regulatory expectations.