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Hard copies of the Amex/SIAC Decimalization Guide (this online copy has been updated with changes made June 5, 2000) are now available at the Trading Desk. As you are aware, the National Association of Securities Dealers, Inc. (NASD®) has submitted a request to the Securities and Exchange Commission (SEC) requesting an extension to the July 3rd planned conversion date. At this point, the SEC is reviewing this request, and possible alternative means of implementing decimals pricing, with input from the exchanges and other industry participants. While the July 3rd date for conversion to decimals pricing is still questionable, the Amex's decimalization efforts continue to be directed toward this date. We are prepared to participate in the industry extended point-to-point tests scheduled for April 8, May 13, and June 10, 2000.
In addition to record layouts for Amex Order Processing, Comparison, and Post Trade applications, the Guide includes:
· technical contacts for our various applications,
· requirements for member firms' testing,
· lists of member firms that should participate in these tests,
· registration information and forms for extended point-to-point testing, and
· equity symbols and options series to be used during testing.
It is to be noted that applications primarily used by specialists' and options traders' clearing agents are also available for testing. These include:
· the Specialist Principal Activity Report (SPAR),
· Amex Specialist's Equity Odd-Lot Output File,
· the Options Comparison inbound/outbound CPU to CPU facility (MQM), and
· the Quote Access and Control Service (QUACS).
While no changes are being made to the Amex Wireless Data System (AWDS), the exchange is making this infrastructure available to member firms for testing changes made to their proprietary applications for decimal pricing.
Those within your organization responsible for facilitating the conversion to decimal pricing, including clearing agents and service bureaus, as applicable, should be made aware that the Amex/SIAC Decimalization Guide is available on our web site. They should also be advised to periodically check www.amextrader.com under "Hot Topics" for the latest communications from the Amex regarding its decimalization efforts and requirements.
Testing for decimalization is not mandated as it was for the year 2000, although it is being closely monitored by government entities such as the SEC, Congress, and the GAO. It is therefore strongly recommended that all member firms and service bureaus that interface with Amex/SIAC systems participate in point-to-point testing for Amex applications, and industry wide extended point-to-point testing as a matter of good business practice.
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