Decimalization Implementation Plan

INFORMATIONAL

Decimalization

Executive Summary

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/Further Information

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 [email protected].

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:

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.

Endnote

¹Release No. 34-42914 (June 8, 2000), 65 Fed. Reg. 38010 (June 19, 2000).