STA Says Decimals Have Hurt Investors
Traders Magazine, May 2003
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.
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.