In fact, they find an average decrease of 13 basis points, or roughly $224 million a month, in savings of institutional trading costs after moving to
decimal trading.
By narrowing the spread,
decimal trading could save investors money by lowering the ask price.
The NYSE has been gradually phasing in
decimal trading since August.
These results suggest that
decimal trading is still not broadly accepted among institutional block traders.
While some elements of the markets' operations have always been a point of contention, the advent of
decimal trading has highlighted key issues and is pushing the tolerance of the institutional trading community.
While the Millennium ATS model is well positioned, the advent of
decimal trading has noticeably fueled the professional community's interest in NYFIX Millennium's unique capability to allow the market exposure of large blocks of shares without causing pre-market impact.
House Commerce Committee Chairman Thomas Bliley, House Commerce Finance Subcommittee Chairman Michael Oxley, House Commerce Committee Member Vito Fossella, and House Commerce Telecommunications Ranking Member Edward Markey are scheduled to participate in a demonstration of how
decimal trading will work on Island, beginning on July 3, consistent with the U.
It is estimated that, by December 2001,
decimal trading will have caused peak message traffic for securities on NASDAQ to increase by 700 percent and peak message traffic for equity and index options to increase by 3,033 percent.
We expect that investors will save hundreds of millions of dollars a year as the industry moves toward
decimal trading, and we are proud to be one of the catalysts for this change," said Island ECN President Matthew Andresen.
Recognizing that the June 2000 deadline for industry-wide
decimal trading conversion is fast approaching, Primeon Inc.
