Security Traders Association (STA) Comment on Today's SEC Roundtable Discussion on Decimalization and Its Effect on Capital Formation

NEW YORK, NY–(Feb 5, 2013) – The Security Traders Association (STA) has issued the following comment on today’s SEC Decimalization Roundtable:
“The Security Traders Association believes it is vital that the SEC conduct a pilot program that studies improvements or degradations to overall liquidity in emerging growth companies by increasing their minimum price variations, or tick sizes. In order for the market to perform its role in capital formation, investors and issuers depend upon strong secondary markets.
“The STA has been a proponent of such a study since our first contact with SEC Chairman William Donaldson on this issue in 2003, and most recently in our testimony before the Financial Services Sub-Committee on Capital Markets and Government Sponsored Enterprises in 2012, and again that year in a letter to SEC Chairman Mary Schapiro.
“We hope today’s roundtable discussion, coupled with comment and suggestions from appropriate market participants, will help the SEC formulate a meaningful pilot program that will produce credible data in determining whether there are benefits to investors and issuers alike.” – Jim Toes, president and CEO, Security Traders Association
About the Security Traders Association (STA)
Founded in 1934, STA is a leading trade organization for individuals in the securities industry.┬áThe STA is committed to promoting the interests of its members in the legislative, regulatory and technological processes, while fostering goodwill and high standards of integrity in accord with its founding principle, Dictum Meum Pactum – “My word is my bond.”
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