What the Pros Are Saying About Decimals
Traders Magazine, October 1999
Aldo Parcesepe Sr. Managing Director OTC Trading Bear Stearns & Co.
Wider spreads? That's a possibility. I think that the forces of supply and demand will dictate whether [the minimum trading increment] will be rounded up or down. [Regulators] are making one assumption that it's going to be rounded down. It might very well be rounded down, but the costs that drive the marketplace are going to drive the rounding, not the fact that they pass a rule saying that [the minimum increment] must be a decimal. If people can't make money at narrower spreads then the spreads will widen.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.