AOL, Compaq Among NYSE Stocks Selected For Phase 2 Of Decimal-Pricing Pilot

The New York Stock Exchange today named 52 companies whose stocks will be priced in decimal format starting Sept. 25, as part of Phase 2 of the securities industry's decimal-pricing pilot. The list includes some of the most-actively-traded stocks, including America Online Inc. and Compaq Computer Corp., which were the first and second most-heavily-traded NYSE stocks in 1999.

These 52 companies (representing 57 issues) are in addition to the six companies (seven issues) announced in July whose stocks will begin trading in decimals on Aug. 28 for Phase 1 of the pilot. In both phases, stocks will be priced in dollars and cents instead of fractions. The minimum pricing increment will be one cent.

The NYSE chose the Phase 2 stocks based on several criteria that the Exchange developed with a securities-industry committee, of which the NYSE is a member. These criteria included choosing stocks that have different levels of daily trading activity. In addition, the Phase 2 stocks are located throughout the trading floor to give more traders experience with decimals, as compared with the Phase 1 stocks, which for ease of implementation are assigned to one workstation at the specialist firm of Spear, Leeds & Kellogg. The names of Phase 1 and 2 stocks appear below.

Approximately 60 days after the end of Phase 2, the NYSE and the industry in consultation with the SEC will evaluate the pilot results, focusing on the impact on liquidity, trading patterns and systems capacity. Following that, a decision will be made on when to extend decimal pricing to all NYSE-listed stocks. April 9, 2001 has been set for decimalization of all equities and options markets.

The NYSE has been decimal ready since April 2000, and has been working closely with the industry and the SEC on the implementation plans. The NYSE's board approved conversion to decimal pricing in June 1997 with the goal of making prices more easily understood by investors, reducing spreads and bringing the United States into conformity with international practices.

Phase 1 Stocks and Symbols (Aug. 28)

Anadarko Petroleum Corp. (APC), Gateway Inc. (GTW), FedEx Corp. (FDX), Hughes Supply Inc. (HUG), Forest City Enterprises Inc. Class A (FCE A), MSC.Software Corp. (MNS), Forest City Enterprises Inc. Class B (FCE B).

Phase 2 Stocks and Symbols (Sept. 25)

Adecco SA (ADO), Lands' End Inc. (LE), Administaff, Inc. (ASF), Lone Star Technologies Inc. (LSS), America Online Inc. (AOL), Martin Marietta Materials Inc. (MLM), American Retirement Corp. (ACR), McMoran Exploration Co. (MMR), Apex Mortgage Capital Inc. (AXM), Morrison Management Specialists Inc. (MHI), Cigna Corp. (CI), Morgan Stanley Dean Witter S&P 500 "ELKS" 03 (BGS), Colgate-Palmolive Co. (CL), Community Bank System, Inc. (CBU), Colonial Investment Grade Municipal Trust (CXH), M&T Bank Corp. (MTB), Compaq Computer Corp. (CPQ), The Newhall Land and Farming Co. (NHL), Daimler Chrysler AG (DCX), NS Group Inc. (NSS), Daimler Benz AG 5.75% Conv. 02 (DAJ), Pulitzer Inc. (PTZ), Groupe Danone (DA), Royal Caribbean Cruises Ltd. (RCL), Donnelly Corp. (DON), Sears Roebuck Co. (S), Duff & Phelps Utilities Tax-Free Income Inc. (DTF), Sears Roebuck Accept. Corp. NTS 7.00% (SRF), Enel Societa Per Azioni (EN), Sears Roebuck Accept Corp. NTS 6.95% (SRH), Factset Research Systems Inc. (FDS), Shangdong Huaneng Power Development (SH), Franklin Resources Inc. (BEN), State Street Corp. (STT), General Motors Corp. (New) Class H (GMH), Stone Container $1.75 Cum. Conv. (STO PRE), Goodyear Tire & Rubber Co. (GT), Stone Energy Corp. (SGY), Lockheed Martin Corp. (LMT), Tejon Ranch Co. (TRC), Harcourt General Inc. (H), Tribune Exc SB DB (Phones) 29 (TXA), Harcourt General Inc. CM CV-A (H PRA), Time Warner Inc. (Holding Company) (TWX), Harman International Ind. Inc. (HAR), Time Warner Inc. Cap 18 7/8% TR Pref. D (TWX PRT), The High Yield Plus Fund Inc. (HYP), Toyota Motor Corp. (TM), HSBC Holdings PLC (HBC), TransAmerica Income Shares, Inc. (TAI), Iomega Corp. (IOM), UBS AG (UBS), Kemper Strategic Municipal Income Trust (KSM), The Valspar Corp. (VAL), The Korea Fund (KF), Van Kampen Investment Grade Municipal Trust (VIG), Watsco Inc. (WSO)