In addition, the board will change its standard increments to sixteenths of a point, or 6.25 cents, from eighths, or 12.5 cents, the NYSE said in a statement.

"Decimals will be a key step toward a more global NYSE," said Chairman and Chief Executive Richard A. Grasso. The move makes the Big Board the first exchange in the country to use decimals; however, most major market around the world already do so.

The NYSE said it will create a committee of senior operations executives to assist in the preparation and implementation of industry efforts to change to decimals.

As for the smaller increments, the new policy will become effective this month, pending approval by the Securities and Exchange Commission. SEC officials have indicated they would approve such measures.

Analysts and industry officials have said the smaller increments, whether as a result of using decimals or smaller fractions, will translate to smaller "spreads" between the bid and offering prices, which will mean better prices for investors. (511K WAV) (511K AIFF)

The American Stock Exchange and several regional exchanges have either switched or publicly announced they will move to sixteenths, threatening to take business away from the NYSE.

The National Association of Securities Dealers said Wednesday it was seeking comment from investors and industry officials on the impact of a changeover to decimals. The NASD on June 2 implemented a sixteenths quote system for bids and offers above $10.