SEC Suspends Deadlines for Decimalization and Requests Comment

Washington, DC, April 20, 2000 - The SEC issued an order in January 2000 directing the exchanges and the NASD to implement decimal pricing beginning no later than July 3, 2000. Because the NASD cannot meet the originally planned implementation schedule, the SEC has issued an order suspending the deadlines for such implementation.

In its most recent order, the SEC reaffirmed its commitment to implementing decimal pricing as expeditiously as possible. Towards this goal, the Commission has requested comment on two alternatives for initiating decimal trading in exchange-listed equity securities this year. These alternatives are:

• First, commence trading in all exchange-listed securities in decimals (in nickel or penny increments) by September 4, 2000; or
• Second, if commenters do not believe that the first alternative is feasible, phase in decimal pricing in certain exchange-listed securities on a pilot basis (Decimals Pilot). The Decimals Pilot could begin by September 4, 2000, and would initially include a small number of exchange-listed securities, which could be quoted in penny increments. The Decimals Pilot would expand to include all listed stocks by March 31, 2001. (Nasdaq is expected to be ready to implement decimal pricing by the termination of the Decimals Pilot on March 31, 2001.)

Comments on the two alternatives are due to the SEC no later than May 10, 2000.