Amex Sets Decimal Switch for Jan. 29

The American Stock Exchange will convert all its listed equities to decimal pricing on Jan. 29, the exchange said.

The decimal trading will apply to all Amex listed common stocks, preferred stocks, rights equity notes and warrants as well as all broad-based indexes, sector indexes, international indexes, index notes and trust preferred securities, the exchange said.

Amex will also begin decimal pricing on all options classes with listed underlying equity and equity products on that day.

Options classes on Nasdaq underlying issues won’t be converted to decimals until later next year, when Nasdaq itself converts to decimals. Full industry conversion is expected no later than April of next year, the Amex said.

The Amex began its conversion to decimals from fractions on Aug. 28, trading six of its listed equities and two options classes in decimals. The Amex trial and a similar trial by the New York Stock Exchange resulted in a 20% narrowing of spreads--the difference between a stock’s bid and ask prices.