June 13, 2000
Washington, D.C.—Frank G. Zarb, chairman and chief executive officer of the National Association of Securities Dealers, Inc. (NASD®), and The Nasdaq Stock Market®, today testified on the NASD’s preparedness for decimalization and the schedule of implementation for conversion to decimal pricing before the Subcommittee on Finance and Hazardous Materials of the House Commerce Committee.
"The NASD remains a strong proponent of decimalization, and is prepared to implement decimal pricing, as the SEC finds it to be in the public interest in maintaining fair and orderly markets and to protect investors," Zarb told the Subcommittee.
In describing the schedule for conversion to decimal pricing, Zarb said the NASD will be prepared to implement decimal pricing for listed securities on September 4 of this year on a pilot or full basis, in nickels or pennies. The NASD is also prepared to implement decimal pricing in Nasdaq securities by March 31, 2001, on either a pilot or full basis, in nickels or pennies. "Because conversion to decimals requires the efforts of all market participants to be successful, the NASD will continue to work with the SEC, Securities Industry Association, and NASD membership to ensure that decimalization occurs in a timely and non-disruptive manner," Zarb explained.
Additionally, Zarb applauded Chairman Oxley and the Subcommittee on the leadership they have shown in spurring the markets to decimalize. "Their constant attention is a contribution to the speed with which the markets and the industry are converting to decimal pricing," he said.
The National Association of Securities Dealers, Inc., is the largest securities-industry, self-regulatory organization in the United States. It is the parent organization of The Nasdaq Stock Market®, The American Stock Exchange®, and NASD Regulation, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdaq.com; www.amex.com; or the Nasdaq NewsroomSM at www.nasdaqnews.com.