The SEC’s five commissioners voted unanimously to reduce the so-called “tick size”, or spread, between buy and sell prices to a half-cent from a full penny for stocks that met certain liquidity criteria. The watchdog also slashed the access fees that users pay exchanges by two-thirds.

Some analysts had said the 50 basis point cut was already priced in by the market, but others said it would be positive for emerging markets such as India, bringing greater foreign inflows over time.