From: Bidisha Chakrabarty []
Sent: Wednesday, December 01, 2004 2:54 PM
Subject: Attention: Robert Colby

Dear Mr. Colby:

As a researcher with interest in the trading increment in US equities markets, I have followed the SEC's various proposals to establish some norms with repect to sub penny quotations/pricing. I have also observed that there are not too many scientific studies done to investigate the impact of sub decimal minimum price increment on various measures of trading quality, primarily due to lack of available data on sub penny quotes. I have been fortunate enough to have access to said data, and have some research results which may be of interest to you.

I have had conversations with Cameron Smith (general counsel) at INET ATS and when I informed him that I intend to send my results to the SEC, he suggested that you might be the right person to contact. Please find attached two manuscripts which present the results of my research on this topic. These results have been presented at some national conferences.

Your comments will be greatly appreciated.


Dr. Bidisha Chakrabarty
Assistant Professor, Department of Finance
367 Davis-Shaughnessy Hall, 3674 Lindell Blvd.
John Cook School of Business, Saint Louis University
St. Louis, MO 63108
Tel: (314)977 3607
Fax: (314 977 1479
Secy:(314)977 3858

Attachment 1: One tick fits all? A Study of the Island and Instinet ECM merger

Attachment 2: Can sub-penny pricing reduce trading costs?