SuperMontage will make the Nasdaq Workstation II® (NWIITM) screen easier to read, show investors more information, and attract more liquidity to the Nasdaq® market. It integrates the current auto-execution (SOESSM) and order delivery (SelectNet®) systems into a single "pipeline," ensuring efficient and expeditious routing of orders and executions.
"Today’s decision to approve SuperMontage is a great step forward for investors and we applaud the SEC for it. SuperMontage will be a breakthrough innovation and another example of Nasdaq using the latest technology for the benefit of all market participants and investors," said Frank G. Zarb, Chairman and CEO of Nasdaq. "SuperMontage will be our new trading system, implemented on a global basis and customized for local needs. It will provide investors with more information regarding what’s available at the best price-and two levels away from the best price-helping them assess the market and make better-informed investment decisions. In our instantaneous online trading world, more information and increased liquidity is an advancement for all concerned."
Zarb continued, "The process we've gone through to get to this point has been difficult, but it was worth it. The input from our market participants, including Market Makers, ECNs, and investors during the rule-making process, both suggestions and criticisms, has resulted in a better finished product and a consensus for us going forward. I also want to note the constructive input and guidance we received from a number of Members of Congress on both sides of the aisle, including, of course, the Chairmen of the relevant Congressional Committees, Senator Gramm and Congressman Oxley. And, of course, most of the credit for balancing the varying interests in a dynamic and highly competitive marketplace for the ultimate benefit of investors goes to SEC Chairman Arthur Levitt, and to Commissioners Isaac Hunt, Laura Unger and Paul Carey. Finally, I appreciate the hard work of the staff of the Division of Market Regulation, most notably Annette Nazareth and Bob Colby."
By incorporating SuperMontage, the Nasdaq screen will be redesigned to include, for the first time, the aggregate size of the best bid/best offer of each security on Nasdaq and the aggregate size one and two price levels away. This new feature will give the investor more information about more potential trades, and give the seller more choices in presenting potential trades to the market.
Combining both the dealer market and an agency market on a level playing field, SuperMontage will allow market participants to provide price and size guarantees via internalization consistent with their customer arrangements and best execution obligations. The new system will reinforce Nasdaq as the true market center and build upon the strengths of Market Makers and electronic communications networks (ECNs), while providing the type of centralization called for by SEC Chairman Arthur Levitt.
More information concerning the implementation of SuperMontage will become available once Nasdaq has the opportunity to fully review the SEC’s approval document.
The Nasdaq Stock Market lists nearly 5,000 companies, has a larger dollar volume, and trades more shares per day than any other U.S. market. Nasdaq is a subsidiary of the National Association of Securities Dealers, Inc., the largest securities-industry, self-regulatory organization in the United States. For more information about Nasdaq, visit the Nasdaq Web site at www.nasdaq.com or the Nasdaq NewsroomSM at www.nasdaqnews.com.
