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What the Pros Are Saying About Decimals

Traders Magazine, October 1999

Peter Chapman

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.

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