FINRA Manual: Contents
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00-67 Decimalization Implementation Plan
Legal & Compliance
In response to the request1 from the Securities and Exchange Commission (SEC) for a plan on the implementation of decimals trading, the National Association of Securities Dealers, Inc. (NASD®) and the exchanges submitted a plan on July 24, 2000. A summary of the critical dates is provided in this Notice to Members.
Questions regarding this Notice to Members may be directed to the ASD Decimalization Program Management Office (DPMO) toll free at: (888) 227-1330, or via e-mail at firstname.lastname@example.org.
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's (SIA) Web Site (www.sia.com).
First Phase Of Decimalization
Please note, on August 28, 2000, the securities industry successfully implemented the first phase in the move to decimalization by trading 13 issues and their related options in decimals. Initial reports have stated that the trading in these issues ran smoothly and volume and spreads on the issues were all within a normal range.
NASD & Exchanges' Decimalization Implementation Plan
On July 24, 2000, the NASD and the exchanges submitted a comprehensive phase-in plan for decimal pricing in equity securities and options. Details of the plan are shown in the table below:
|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|
To view the complete plan, visit the SEC Web Site (www.sec.gov/rules/othern/decimalp.htm). The SEC has not given final approval to the plan.
1Release No. 34-42914 (June 8, 2000), 65 Fed. Reg. 38010 (June 19, 2000).