FINRA Manual: Contents
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00-80 Nasdaq Decimalization Testing & Decimalization Implementation Phase-In Plan
Legal & Compliance
Initial plans for Nasdaq® decimalization testing are included in this Notice to Members. Also, a summary is provided of the industry critical dates.
Questions regarding this Notice to Members may be directed to the National Association of Securities Dealers, Inc. (NASD®) Decimalization Program Management Office (DPMO) toll free at: (888) 227-1330 or via e-mail at email@example.com.
For the most recent decimalization news and developments, visit the NASD Web Site (www.nasd.com) and click on the decimalization link. Additional decimalization information is available on the Securities Industry Association (SIA) Web Site (www.sia.com).
Nasdaq Decimalization Testing
In accordance with NASD Rule 3420, some market makers and clearing firms must conduct decimalization testing. Selected firms will be notified in December 2000 by the NASD and will be given more information at that time on their testing requirements.
Point-to-Point - Limited point-topoint testing will begin mid-December 2000 with full testing beginning January 2001 and continuing through April 6, 2001.
Extended Point-to-Point - Testing will take place on January 27 and February 10, 2001. In order to participate, firms will need to successfully complete point-to-point testing and will be required to register at least 48 hours in advance. Testing will be scripted in the morning, and unscripted in the afternoon.
Full testing information will be available by December 1, 2000.
NASD & Exchanges' Decimalization Implementation Plan
On July 24, 2000, the national securities exchanges and the NASD submitted a comprehensive phase-in plan for decimal pricing in equity securities and options.
Details of the plan are shown in the table below.
The SEC has not given final approval to the plan.
|Checkpoint I||Pre-Implementation Evaluation||August 15, 2000|
|Phase I||Limited Exchange-Listed Issues and Options||August 28, 2000|
|Checkpoint II||Determine Readiness for Additional Exchange-Listed Issues and Options||September 19, 2000|
|Phase IIA||Additional Exchange-Listed Issues and Options||September 25, 2000|
|Checkpoint III||Determine Readiness for Full Implementation of Exchange-Listed Issues and/or All Options||November 1, 2000|
|Phase IIB||Full Conversion Exchange-Listed Issues and/or All Options||November 2000 - April 2001|
|Checkpoint IV||Limited Nasdaq Issues||March 5, 2001|
|Phase III||Limited Nasdaq Issues||On or before March 12, 2001|
|Checkpoint V||Determine Readiness for All Markets, Full Implementation||April 2, 2001|
|Phase IV||All Markets, Full Implementation||On or before April 9, 2001|