Abstract: Even though decimal arithmetic is pervasive in financial and commercial transactions, computers are still implementing almost all arithmetic calculations using binary arithmetic. As chip real estate becomes cheaper it is becoming likely that more computer manufacturers will provide processors with decimal arithmetic engines. Programming languages and databases are expanding the decimal data types available while there has been little change in the base hardware. As a result, each language and application is defining a different arithmetic and few have considered the efficiency of hardware implementations when setting requirements. In this paper, we propose a decimal format which meets the requirements of existing standards for decimal arithmetic and is efficient for hardware implementation. We propose this specification in the hope that designers will consider providing decimal arithmetic in future microprocessors and that future decimal software specifications will consider hardware efficiencies.