Securities Pricing.Securities and Exchange Commission (SEC) Release No. 34-42360 directs the securities markets to begin quoting securities prices in decimals by July 3, 2000. The order required (1) the markets to submit a decimals pricing implementation plan by March 13, 2000 and (2) the options and equities markets to phase in decimal pricing by year-end. During the phase-in period, the markets can quote equity securities in price increments of up to five cents. The markets must also create and conduct a pilot program during the phase-in period, in which a sample of securities will be quoted in one-cent increments. At the end of the six-month phase-in period, the markets must submit a study to the SEC on the effect of decimal pricing on trading and capacity. The study should also address whether a uniform pricing increment is needed and, if so, what the increment should be. Absent further SEC action, after submission of the study, each market is required to submit for SEC consideration any rule changes necessary to implement their choice of pricing increment. The markets affected include the following: * American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. LLC (AMEX). * Boston Stock Exchange, Inc. (BSE). * Chicago Board Options Exchange Chicago Board Options Exchange (CBOE) A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index) , Inc. (CBOE). * Chicago Stock Exchange Chicago Stock Exchange (CHX) A major exchange trading only stocks, with 90% of trades taking place on an automated execution system, called MAX. , Inc. (CHX). * Cincinnati Stock Exchange Cincinnati Stock Exchange (CSE) Stock exchange based in Cincinnati that is the only fully automated stock exchange in the US. It has no trading floor, but handles all members' transactions using computers. , Inc. * National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. , Inc. (NASD). * New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , Inc. (NYSE). * Pacific Exchange, Inc. (PCX). * Philadelphia Stock Exchange, Inc. (PHLX). |
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