NYSE Takes Steps on Decimal Perceptions

June 8, 2001 (PLANSPONSOR.com) - Although it has found no evidence that institutional customers are suffering from the switch to decimal pricing, the New York Stock Exchange (NYSE) will still implement some changes.

The new rules are designed to keep them from cutting ahead of public orders by making offers that are a penny more than the existing bid, otherwise known as “pennying’ or “stepping ahead.

NYSE Chairman Richard Grasso said the perception that large orders are at a disadvantage has cost the NYSE about 2% of transactions totaling more than 100,000 shares as customers move to other markets to fill those orders.

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Penny “Saved”-

The first rule change limits a specialist’s ability to become involved in a stock transaction when the would-be seller and buyer are represented by the same broker.

The second rule change gives special priority to transactions over 100,000 shares, by allowing brokers more flexibility to complete a deal and by restricting a competing bidder’s ability to break up the transaction, according to Dow Jones. That should make it easier to complete a big trade at a single price.

The NYSE plans to ask the Securities Exchange Commission to make the first change permanent, while the second proposal will operate as a six-month trial.

IRS Posts Draft Determination Letter Forms

July 6, 2001 (PLANSPONSOR.com) -The Internal Revenue Service has published draft revisions of determination letter application forms on the Employee Plans Corner section of its Web site.

Draft revisions of Forms 5300, 5307, 5310, 6406 and Schedule Q and their related instructions are now online at http://www.irs.ustreas.gov/bus_info/ep/deter_ltrs.html. These forms are draft versions, and may not be used to file determination letter applications.

The IRS cautions that these forms are considered ‘drafts’ and, as such, remain subject to changes in format and content before final versions are available. However, practitioners can take a sneak peak at the current thinking.

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The forms available include:

  • Form 5300 and Instructions – Application for Determination for Employee Benefit Plan
  • Form 5307 and Instructions – Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans
  • Form 5310 and Instructions – Application for Determination for Terminating Plan, which is used by the sponsor of a qualified plan which is terminating, with the exception of multi employer plans covered by Pension Benefit Guaranty Corporation (PBGC) insurance
  • Form 6406 and Instructions – Short Form Application for Determination for Minor Amendment of Employee Benefit Plan, used by adopters of minor amendments for plans with a current determination letter
  • Schedule Q (Form 5300) and Instructions – Elective Determination Requests, which is used in conjunction with Forms 5300, 5307 and 5310 to request determinations for certain coverage and nondiscrimination requirements

The Adobe Acrobat Reader software is required to view, print and search these files.

 

– Nevin Adams                             editors@plansponsor.com

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