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Campbell: Size Rule Helps Traders

Traders Magazine, February 1998

Jeffrey L. Winograd

The National Association of Securities Dealers is seeking the approval of the Securities and Exchange Commission to allow market makers to quote all Nasdaq stocks in 100-share minimum proprietary trade quotes, J. Patrick Campbell, Nasdaq's executive vice president for market services, told the annual mid-winter convention of the Philadelphia Security Traders Association.

Currently, 150 Nasdaq stocks are subject to an actual-size rule, allowing traders to quote these stocks in minimum trade sizes of 100 shares. The NASD had proposed the elimination of the 1,000-share minimum quote-size rule on all stocks as a natural consequence of the order handling rules. The proposed new Nasdaq trading system, in fact, may hinge on traders being allowed to quote all stocks in minimum trade sizes of 100 shares.

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