Earlier today, the Managed Funds Association submitted a comment letter to the Securities and Exchange Commission (SEC) on decimalization and a tick size pilot program. In the letter, MFA outlined its views on the matter. MFA believes that decimalization has been an enormous success as it has dramatically reduced transaction costs for investors—especially for retail investors who typically trade at the national best bid or offer. MFA supports standardized minimum tick sizes that are set methodically and based on empirical data to help securities trade more efficiently. In the letter, MFA states that a pilot program could be helpful in testing an approach to improve liquidity of smaller stocks. MFA does not believe, however, a pilot program would prove useful as a means for assessing the impact of tick size on the sell-side research following of these stocks or on the number of initial public offerings. The link between these broader objectives is too tenuous and too dependent on inefficient cross-subsidies to make a pilot program on tick size effective as a test of means for achieving these goals.