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STA Says Decimals Have Hurt Investors

Traders Magazine, May 2003

Gregory Bresiger

The Securities Traders Association wants to return to a time when the trading industry wasn't hurt by the use of decimals. "We believe that the introduction of decimalization, although well intended, has increased investors' costs, reduced transparency, increased volatility, and diminished the visibility of liquidity," John Giesea, president and chief executive officer of the STA, wrote in a letter to William Donaldson, the new chairman of the Securities and Exchange Commission. Active fund managers have seen their trading costs rise by one percent to two percent of assets, the STA said, citing an academic study.

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