In a 23-page report posted on its Web site, Nasdaq issued its first comprehensive report on the performance of SuperMontage. The report focuses on its first week of operation--December 2-6. SuperMontage, Nasdaq's next-generation transaction system, was launched on Oct. 14, and was implemented in nine-phases with all Nasdaq stocks being traded by Dec. 2.
According to the Nasdaq report, SuperMontage is much faster and more efficient than its legacy-system predecessors-- SuperSoes and SelectNet. Orders typically receive their first execution in less than one-tenth of a second, compared to half of a second for SuperSoes orders and more than one second for SelectNet orders. The report says,"There was also strong evidence that the system has buoyed Nasdaq's execution market share by adding an increase of one to two percentage points to Nasdaq's SuperSoes and SelectNet share."
ECNs continue to be the most active quoters in Nasdaq securities. However, Nasdaq attributes a decline in the number of quote updates for ECNs from 68.5 percent to 44.9 percent can solely be attributed to Instinet's move to the Alternative Display Facility(ADF). The report evaluates four major areas: execution quality, liquidity and quoting behavior, market share, and market quality. To access the report, go to: www.nasdaqnews.com Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio