The Investment Company Institute of Washington D.C. earlier this month asked the New York Stock Exchange to make changes to Institutional XPress, the trading system for large orders by mutual funds and other institutional investors that the exchange began using last June.
Institutional XPress has been installed as part of the NYSE's movement towards decimalization. Last June, the Securities and Exchange Commission issued an order directing the exchanges to begin devising a plan to replace fractional pricing with decimal pricing. Instead of using sixteenths or eighths of dollars, securities will move in increments of pennies or nickels, which narrows bid-ask spreads and provides simpler numbers to deal with. On Jan. 29, the NYSE completed the conversion and all of the listed securities began trading in decimals. In principle, the ICI supports that transition.