The phase-in plan may fix the minimum quoting increment during the phase-in period, provided that the minimum increment is no greater than five cents and no less than one cent for any equity security. The implementation plan must be submitted to the Commission by July 24, 2000. Individual SRO rule changes necessary to implement the plan must be submitted to the Commission by August 7, 2000.
Chairman Arthur Levitt said, "Under the leadership of Chairman Bliley, Chairman Oxley, Congressman Markey, and other members of Congress, decimalization will become a reality this year and investors will soon reap the benefits of trading in decimal increments."
Chairman Levitt continued, "As the securities markets become more global, with many stocks traded in multiple jurisdictions, the U.S. securities markets must adopt the international convention of decimal pricing to remain competitive. The overall benefits of decimal pricing are likely to be significant. Investors may benefit from lower transaction costs due to narrower spreads and prices will be easier to understand. It is time for the U.S. securities markets to make this change."
