[12654]
September 22, 2000
TO: EQUITY MARKETS ADVISORY COMMITTEE No. 51-00
RE: AMENDMENTS TO NYSE, NASDAQ AND AMEX RULES TO IMPLEMENT DECIMAL
PRICING
In response to an order of the Securities and Exchange Commission, the national
securities exchanges1 and the National Association of Securities Dealers, Inc. (through its
wholly-owned subsidiary, The Nasdaq Stock Market), have each filed with the SEC proposed
changes to their rules relating to decimal pricing.2 Although these rule changes became
effective immediately upon being filed with the SEC, comment is being solicited on them.
Comments are due to the SEC by September 29, 2000.
These rule changes were filed in response to an order that the SEC issued on June 8,
2000, that required the national securities exchanges and the NASD to submit a phase-in plan to
the SEC by July 24, 2000 to provide for decimal pricing in: (i) exchange-listed securities and
options by September 5, 2000; (ii) some Nasdaq securities by March 12, 2001; and (iii) all
exchange-listed securities and Nasdaq securities by April 9, 2001. The SEC’s order also required
the exchanges and the NASD to file by August 7, 2000 rule changes necessary to implement the
plan.
The rule changes generally revise references in the rules from fractions to decimals to
accommodate the implementation of decimal pricing in accordance with the phase-in plan
submitted to the SEC. In particular, references to fractions have been converted to two decimal
places (e.g., $.25 for ). Where the reference is to a fraction that does not convert to a two-place
decimal (e.g., ), the fraction generally has been rounded down to the nearest five cent
increment (e.g., $.10 for rather than $.125).
Amy B.R. Lancellotta
Senior Counsel
Attachment
1 The national securities exchanges subject to the SEC’s order are the New York Stock Exchange (NYSE), the
American Stock Exchange (Amex), the International Securities Exchange LLC (ITS), and the Chicago Board Options
Exchange (CBOE).
2 A copy of the SEC’s releases relating to the NYSE, Amex and Nasdaq rule changes is attached. Securities Exchange
Act Releases Nos. 43230, 43231 and 43232 (dated August 30, 2000). Amendments to the ITS Plan relating to decimal
pricing in listed securities were also filed and immediately effective.
2Attachment (in .pdf format)