A system and method for converting from scaled binary coded decimal (SBCD) into decimal floating point (DFP). The system includes a mechanism for receiving one or more of an exponent part of a SBCD number and a coefficient part of the SBCD number. The system also includes at least one of a mechanism for performing coefficient compression on the coefficient part of the SBCD number to create a coefficient part of a DFP number and a mechanism for performing exponent insertion including inserting the exponent part of the SBCD number into an exponent part of the DFP number.