Investing August 17, 2004

S&P Reverts to Primary Exchange Pricing

August 17, 2004 (PLANSPONSOR.com) - After testing the use of closing prices from the American Stock Exchange for 12 NASDAQ-listed stocks in the S&P 500, Standard and Poor's has decided that using pricing on a stock's primary exchange is the preferred approach.
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S&P said in a news release that pricing for the stocks in the pilot program test reverted to the NASDAQ on July 6, and will continue to be based on NASDAQ pricing and that all equities in the S&P’s US indices will be priced from the company’s primary exchange. S&P said in the announcement that the effort was sparked by concerns about the closing prices on some occasions with NASDAQ-listed stocks.

“The pilot program’s objective was to improve the reliability and achievability of closing prices on the S&P 500 for investors who use the index,” David Blitzer, S&P Managing Director, said in the announcement.  “The efforts of both the Amex and NASDAQ have been instrumental in bringing such improvement about.”

More information on the pilot program is at www.standardandpoors.com/indices .

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