Block Traders Rip Decimalization

NEW YORK (HedgeWorld.com)–A survey of equity block traders indicates they are extremely unhappy with the effects of the decimalization of stock quotations on block trading.

More than 80% of respondents said that decimalization has had a net negative effect on block trading, with close to 80% suggesting that decimalization be modified, according to the survey results. The survey was conducted by block trading broker Harborside+.

Of those who suggested that the decimalization of block trading be changed, 95% of respondents preferred, from a choice of two, that a minimum spread be used, such as a nickel, while 5% chose a minimum size increment for block trading.